Nvidia Offers Bid For Mellanox

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Today, the Calcalist financial news website said that Nvidia Corp, the gaming and computer graphics giant that is based in the United States of America, has tabled an offer to acquire Mellanox, an Israeli chip designer.

Reportedly, the bid joins that of other tech giants that are also reportedly attempting to acquire the Yokne’am, Israel-based maker of servers and storage switching solutions. These reportedly include Intel Corp., Microsoft, and Xilinx Inc.,a  US tech company.

Nvidia is fighting for Mellanox with Intel Corp. Calcalist said that the latter has already offered $6 billion for the Israeli firm. It cited estimates that Nvidia would pay at least 10 percent more than the price that was offered by Intel.

Calcalist said that the advantage of Nvidia is that it would have a greater possibility of obtaining the regulatory approval of China and the United States of America as Mellanox and Intel control the market for InfiniBand technology, a networking communications standard that is commonly used in supercomputers.

The shares of Mellanox are traded on the Nasdaq at a company valuation of $5.9 billion after the share skyrocketed by 51 percnet in the last 12 months amid the speculation of an acquisition and as the company reported record revenues last year.

Last January, Mellanox reported record revenues, which last year crossed the $1 billion mark for the first time in the history of the company, as clients demanded higher speeds for their AI computations, data centres, and cloud platforms.

Mellanox is a manufacturer of chips and other hardware for data centre servers that power cloud computing. It said that it does not comment on speculations or rumours. Officials at Nvidia could not be reached for comment outside of the regular business hours of the United States.

Intel has refused to issue comments regarding the reports that it is attempting to acquire Mellanox.