Tech giant Nvidia reportedly shelled out over $900 million to secure the services of Enfabrica CEO and acquire their technology, according to CNBC.
In a significant move, Nvidia has announced the acquisition of Enfabrica, an AI hardware startup based in Silicon Valley, for over $900 million. The deal, which closed last week, includes both cash and nvda stock payments.
Founded by veterans from Broadcom and Alphabet, Enfabrica has raised $260 million in venture capital and has been making waves in the AI field with its focus on solving a technical problem: connecting tens of thousands of chips into a network that works efficiently.
The startup's technologies can connect approximately 100,000 AI computing chips before the network starts to slow down, a feat that could potentially address a common issue in the AI industry, where the network's speed can cause expensive chips, including nvidia stock, to idle due to waiting for data.
Rochan Sankar, the CEO of Enfabrica, will be joining Nvidia as part of the acquisition. Sankar's departure from Enfabrica follows Meta's move in June, where they took a 49% stake in Scale AI and brought in its 28-year-old CEO, Alexandr Wang, to play a prominent role in its artificial intelligence strategy. The deal between Nvidia and Enfabrica is reminiscent of recent agreements by Meta and Google, according to a CNBC report.
While specific hires from Enfabrica, besides CEO Rochan Sankar and the founding team, have not been named in publicly available sources, it is known that other employees and further talents from Enfabrica will be joining Nvidia.
Enfabrica recently released a chip-and-software system in July aimed at reducing the cost of memory chips in data centers. This acquisition by Nvidia could potentially accelerate the development and implementation of this technology.
With the acquisition of Enfabrica, Nvidia continues to solidify its position as a leader in the AI industry, furthering its capabilities and technology to meet the growing demands of the AI market.
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