NVIDIA strikes $900M deal with AI hardware start-up Enfabrica
What's the story
NVIDIA has entered into a deal with Enfabrica, an artificial intelligence (AI) hardware start-up, for over $900 million in cash and stock. The deal includes the hiring of Enfabrica's CEO, Rochan Sankar, and other staff members, and licensing the company's technology. The transaction was finalized last week with Sankar already assuming his new role at NVIDIA.
Tech challenge
Connecting thousands of AI computing chips
Enfabrica, a Silicon Valley-based chip start-up, is working on a major technical challenge in the AI space: connecting thousands of chips into one network. This would let them work as one computer. The company's tech can connect some 100,000 AI computing chips before the network starts slowing down. This way, expensive chips from companies like NVIDIA don't sit idle waiting for data.
Company history
$260 million raised in venture capital
Founded by former Broadcom and Alphabet employees, Enfabrica has raised $260 million in venture capital. In July, the company launched a chip-and-software system designed to cut down the cost of memory chips in AI data centers. NVIDIA's deal with Enfabrica is similar to recent moves by tech giants such as Meta and Google to enhance their AI capabilities through strategic acquisitions and talent recruitment.