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The future of Mellanox: NVIDIA Bids Big Bucks to Acquire the Networking Pioneer

Mellanox Technologies is a networking company based in Sunnyvale, California. It’s other headquarter happens to be in Israel. While it is a networking company, they specialise in data centres. Given that the future is headed to data centres and everything on the cloud, there is no doubt that the company is a hot asset today. To add more to its value, the company’s stock rose as they reported approximately  $1 Billion in revenue. Naturally, this makes it quite attractive to companies like  NVIDIA and Intel.

Mellanox
Mellanox Technologies

As mentioned above, the world moves towards more integrated and advanced versions of data centres. A player in this game, pioneering new interconnecting technology would be quite the asset. The player in this particular case happens to be Mellanox Tech. According to a report by Calcalist, NVIDIA has bid a whopping amount of about 6.6 billion dollars to acquire the company. This supercedes the previously rumoured bid of a bit less than 6 billion dollars by Intel. This is an obvious advance by NVIDIA to acquire the prospering company.

intel and nvidia
Intel and NVIDIA

The more important thing readers may be looking to read in this piece and what does matter is “The Why?“. Why would both these giants be aiming to acquire this company? Well, for starters: Mellanox’s advancement in terms of interconnects for data centres means the company would be ahead in the field that is possibly the future. It would aid NVIDIA in their cloud gaming platform as well which is necessary if they aim to compete with Microsoft or Google. Secondly, even though the company has developed its networking sector, it is no match for the technology and the advancement that Mellanox has achieved. Another reason for NVIDIA’s bold approach is their involvement is Mellanox’s headquarters in Israel. At the time that this article is written, NVIDIA has next to none in terms of a presence in Israel. This would ensure they fill that gap in their currentent market presence.

All in all, the bid race to acquire Mellanox has taken quite the turn with NVIDIA’s bid. One could even say that they have certainly taken the cake. As for Intel, they may just have the last laugh, given the size of their company. Only time will tell how things progress but for now, NVIDIA has the upper hand and is a step closer in safeguarding its future in terms of a networking presence.


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