Crypto Mining Chip Producer Nvidia Gobbles up Mellanox for $6.9 Billion
The recognized chipmaker from the United States, Nvidia, announced that it is buying the Israeli-based chip designer company Mellanox Technology. To close the deal, the chipmaker will pay $6.8 billion. In this way, the firm will be able to boost its data center business.
Nvidia Purchases Mellanox Technologies for $6.8 Billion
According to a recent report released by CNBC, Nvidia has decided to purchase Mellanox Technologies for $6.8 billion. The chipmaker seems to be getting prepared for the next bull run in the crypto space and it is trying to compete with other firms in the space.
Jensen Huang, the CEO of Nvidia, commented about it:
“The data centre has become the most important computer in the world. The thing that’s really exciting is that the computer no longer starts and ends at the server. The computer in the future would extend into the network. And what we want to do is, we want to extend our computing reach from the server, where we are today, out to the entire data centre.”
The deal followed a very competitive bidding process that included several rival chipmakers, including Intel. According to CNBC, Xilinx was also part of this process.
Mining activities in the cryptocurrency space have been affected due to the bear market that Bitcoin (BTC) and other digital assets experienced throughout 2018. Most of the virtual currencies dropped more than 80% and mining-related firms have been heavily affected.
If the acquisition goes on as planned, it will be helping the firm to diversify its business and reduce the dependency on graphics cards. This is very important for the company that will be able to face crypto cycles in a much smoother way in the future.
Other crypto mining firms such as Bitmain have been heavily affected by the digital currency bear market. Indeed, the ASIC hardware producer has closed two offices, one in Israel and another one in the Netherlands.
As CNBC informs, the deal is expected to be closed as soon as in 2019. It will be interesting to see how Nvidia will be improving its services and products released to the market in the coming years.