Nvidia alleged to invest $900 million in Enfabrica technology and its CEO, according to reports - AI networking chip firm capable of synchronizing up to 100,000 GPUs
Nvidia Strengthens AI Presence with Major Hires and Partnerships
In a move to bolster its AI capabilities, Nvidia has announced a significant investment in Intel, acquiring a $5 billion stake in the CPU giant. This strategic move comes as part of a wider trend in the tech industry, where companies have been actively competing for top AI talent over the past few months.
Meta, similar to Nvidia, has been making expensive hires in the AI field, including the CEO of ScaleAI. However, Meta recently announced a freeze to its hiring and spending spree, while Google has reportedly let go of several hundred of its AI contractors.
Amidst this competitive landscape, Nvidia's latest hire is the CEO of AI networking hardware company, Enfabrica. The company, which claims it can connect more than 100,000 GPUs, has developed a patented technology called FleetIQ. This technology promises to improve cluster efficiency and communication in large-scale GPU deployments, providing solid scalability for Nvidia.
As part of the deal, Nvidia will get the option to license Enfabrica's hardware. Rochan Sankar and a number of his colleagues at Enfabrica will become Nvidia staff members. The deal, which involves cash and stock options, is reported to have cost Nvidia over $900 million.
Nvidia's GPUs power many of the world's data centers and AI factories. In some data centers, tens or hundreds of thousands of GPUs can work together. Nvidia's NVLink technology allows high-speed communication between its GPUs, but Enfabrica's technology may be able to help improve these connections further.
The tech industry has seen a trend of expensive hires in the AI field in recent months. Meta, Google, and other tech firms have been involved in this competition, with companies like Microsoft, OpenAI, Anthropic, and Google trying to poach each other's top talent for many months.
Nvidia is also investing over $700 million into the development of a new data center in the UK in partnership with startup Nscale. This new data center is expected to further strengthen Nvidia's position in the AI sector.
The deal comes two years after Nvidia invested part of a $125 million fund into Enfabrica. This latest acquisition underscores Nvidia's commitment to staying at the forefront of AI technology development.
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