Nvidia knocked out Intel in its bid to buy the Israel chipmaker Mellanox. As Fred Katayama reports, the $6.8 billion deal will help Nvidia boost its business of making data center chips that help power cloud computing.
(REUTERS / INTEL / MELLANOX) – Nvidia knocked out rival Intel in a deal that’ll boost its data center business. It’s buying Israeli chip designer Mellanox Technologies for nearly $7 billion. Its cash offer carries a 14 percent premium.
Mellanox makes chips and other hardware for data center servers that power cloud computing. Analysts say Nvidia can benefit from Mellanox’s expertise in networking and connectivity, two areas the American chip maker has been trying to bolster. Data center revenue makes up about a third of Nvidia’s sales.