Nvidia offers bid for Israeli chip firm Mellanox

Roman Schwartz
March 12, 2019

The firm outbid microprocessor giant Intel, which was looking to use Mellanox to expand its datacenter capabilities. Mellanox shares rose 8.4 percent to $118.56 and Nvidia shares gained 2.8 percent in early Nasdaq trading on Monday.

Nvidia management comments on a conference call that discussions to buy Mellanox were relatively recent suggested that they may have calculated that Mellanox as part of Intel would have hindered Nvidia's long-term growth, Rosenblatt Securities analyst Hans Mosesmann said. Known for its computing chips, Intel has steadily added other chips for memory and networking in order to grab a bigger slice of customer spending. Microsoft and Xilinx, a US-based supplier of programmable logic devices, were also allegedly eying up the company.

Meanwhile, with NVIDIA's own datacenter and HPC revenues growing by leaps and bounds over the last few years - thanks in big part to the machine learning boom - NVIDIA has made a decision to expand their datacenter product portfolio by picking up Mellanox. The Israeli company's technology is used "in over half of the world's fastest supercomputers" along with so-called hyperscale datacenters, NVIDIA points out. Nvidia and Mellanox aren't strangers; they have previously worked together on several products including the likes of the Nvidia DGX-2, as well as the #1 and #2 USA supercomputers - Summit and Sierra. So it has to be distributed on multiple computers and the high performance connectivity to allow these computers to work together is becoming more and more important. Imagine the possibility of combining NVLink - Nvidia's high-speed protocol for intra-GPU communication - with Mellanox's networking and server products. Mellanox will pay a $350 million termination fee to Nvidia if it accepts a rival offer.

The Sinking City delayed until June to give players "breathing space"
In any case, this allows Frogwares more time to optimize their title and smooth out any issues ahead of its new release date . The developers have promised that all this time spent on improving the quality of the final assembly of the game.

The headlining transaction has already been approved by both companies' boards of directors and is expected to close by the end of calendar year 2019.

Nvidia announced at the Consumer Electronics Show in Las Vegas in January an autopilot system for self-driving vehicles called Nvidia Drive.

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