NVIDIA‘s $7 billion worth acquisition of Mellanox was initially announced on March 11, 2019, It unites two companies in high performance and data center computing. The move will enable customers to achieve higher performance, greater utilization of computing resources, and lower operating costs.
AI and accelerated data science
The acquisition is expected to be immediately accretive to NVIDIA’s non-GAAP gross margin, non-GAAP EPS, and free cash flow, inclusive of incremental interest expense related to NVIDIA’s recent issuance of $5 billion of notes. Jensen Huang, founder and CEO of NVIDIA said,
“The expanding use of AI and data science is reshaping computing and data center architectures. With Mellanox, the new NVIDIA has end-to-end technologies from AI computing to networking, full-stack offerings from processors to software, and significant scale to advance next-generation data centers. Our combined expertise, supported by a rich ecosystem of partners, will meet the challenge of surging global demand for consumer internet services, and the application of AI and accelerated data science from cloud to edge to robotics.”