A few months ago, "Globes" first reported the opening of Nvidia's artificial intelligence research center in Israel, under Prof.
It will reportedly help NVIDIA better compete in the server market, which accounts for about a third of its sales. NVIDIA wasn't the only one with its name in the acquisition hat with Intel being outbid by the GPU giant in its quest to acquire Mellanox.
"We share the same vision for accelerated computing as Nvidia", said Eyal Waldman, founder and CEO of Mellanox. 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. As well as gaining significant resources from Mellanox, Nvidia's deal keeps these same resources out of the hands of direct competitors like Intel.
Nvidia has come out on top in a bidding war for chipmaker Mellanox. Intel declined to comment on whether the company had bid for Mellanox, while Xilinx did not immediately respond to a request for comment. 'Addressing this demand will require holistic architectures that connect vast numbers of fast computing nodes over intelligent networking fabrics to form a giant data centre-scale compute engine.
"The emergence of AI and data science, as well as billions of simultaneous computer users, is fueling skyrocketing demand on the world's datacenters", said NVIDIA CEO Jensen Huang.
Mellanox is based in Israel and the United States and the company's chips are used to power high-speed networks connecting servers.
Nvidia and Intel, as is usual for the companies, have refused to speculate on the sources' claims, but an announcement from the successful bidder is expected early this week. Mellanox will pay a $350 million termination fee to Nvidia if it accepts a rival offer. Combining our two companies comes as a natural extension of our longstanding partnership and is a great fit given our common performance-driven cultures. The transaction has been approved by both companies' boards of directors and is expected to close by the end of CY 2019.