Business News Analysis: Nvidia Acquires Mellanox Technologies for $6.9 Billion.
Report by Ms. Megha – from Cohort 2018-20
A critical study was done on the above news and the analysis was presented by the team consisting of
1. Ajay Kumar
Nvidia has purchased Mellanox Technologies in a major deal expected to significantly further the company’s data center aspirations. The $6.9B purchase price is by far the largest acquisition in Nvidia’s history and Team Green beat out at least two other interested companies, Microsoft and Intel, for the purchase. The deal would be Nvidia’s biggest-ever acquisition and boost its business of making chips for data centers, allowing it to reduce its reliance on the video game industry, for which it is best known as a major technology vendor.
If and when Nvidia and Mellanox close the deal, the chipmaker will have a powerful computing stack for deep learning, HPC, and big data analytics. The combination will make it successful with hyperscale cloud platforms and other cloud-native companies, but the chipmaker will have to make a serious effort to make it palatable for more traditional enterprises.