NVIDIA to Acquire Mellanox Technology for $6.9 Billion

Discussion in 'Frontpage news' started by Hilbert Hagedoorn, Mar 11, 2019.

  1. Hilbert Hagedoorn

    Hilbert Hagedoorn Don Vito Corleone Staff Member

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  2. Kaarme

    Kaarme Ancient Guru

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    I bet at least a hundred million went to those big name financial and legal advisors mentioned at the end of the article.

    Anyway, I'm glad Nvidia got it, not Intel, if indeed the company's fate was to be bought.
     
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  3. schmidtbag

    schmidtbag Ancient Guru

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    Why? To me, this seems like really bad news - I smell a monopoly coming. Intel needs everything they can get to be competitive, and Nvidia is already dominating the server GPU market. Nvidia could've bought Mellanox years ago so for them to do this now was really just to spite Intel, and leave AMD in the dust while they're at it (there are AMD systems involving Mellanox hardware).
     
  4. __hollywood|meo

    __hollywood|meo Ancient Guru

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    considering team greens questionable business practices as of late, i cant say im sorry to see them bogged down with a massive capital obligation like this.
     

  5. Denial

    Denial Ancient Guru

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    I can hardly fault Nvidia for not wanting the only other infiniband company to be gobbled by Intel.

    The rest of the industry seems to be moving behind Gen-Z Interconnect anyway. This will temporarily hurt AMD/Xilinx but I don't see it as a long term issue.

    https://www.anandtech.com/show/12431/genz-interconnect-core-specification-10-published
     
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  6. SniperX

    SniperX Active Member

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    Because Intel already acquired QLogic IB technology....for that reason, I'm glad there is still another player in the market (Nvidia), although Oracle developed their own IB interconnects, not sure if they sell to third parties.
     
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  7. Noisiv

    Noisiv Ancient Guru

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    Not-a-monopoly:


    The acquisition will unite two of the world’s leading companies in high performance computing (HPC). Together, NVIDIA’s computing platform and Mellanox’s interconnects power over 250 of the world’s TOP500 supercomputers and have as customers every major cloud service provider and computer maker.
     
  8. Aekold

    Aekold Active Member

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    From what I've read, it's actually the opposite. Intel has been heavily present in the InfiniBand market since their purchase of QLogic's IP in 2012. They are major manufacturers of InfiniBand host bus adapters and network switches. Mellanox was their biggest competitor. Intel also has its hand in Ethernet and Omni-Path. For these reasons, many speculated that regulators would have stepped in if Intel had won the bid.

    Nvidia, on the other hand, has partnered with Mellanox in the past and relies on their networks, but has never had a presence in the InfiniBand market itself. While this acquisition rounds out their server/data center portfolio quite nicely (maybe too nicely), they don't run the same risk of being viewed as a monopoly as Intel. The purchase was done simply to provide them with a financial fallback, should their GPU business take a hit (as it did recently).

    EDIT: Looks like others beat me to it while I was writing this. :)
     
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  9. cowie

    cowie Ancient Guru

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    how bad could they be doing with 7b cash laying around.
    they have a lot going on already besides gpu's that is only 30% of their cash flow
     
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  10. Astyanax

    Astyanax Ancient Guru

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    companies like this can also make use of their own equity to take over another entity.
     
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  11. schmidtbag

    schmidtbag Ancient Guru

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    I agree; I totally understand why Nvidia is doing this, I just don't like what this means.

    Ah, I wasn't aware of that. So basically Intel was trying to eliminate all IB alternatives from the market?

    So... how are you thinking this won't be a monopoly? Both Mellanox and Nvidia have a huge presence in major servers. Combine the two and all of that success goes toward 1 company; a company known for proprietary products. That's not good news as far as I'm concerned.
     
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  12. Noisiv

    Noisiv Ancient Guru

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    @schmidtbag

    They are combining the numbers: Nvidia + Mellanox = over 250 of the world’s TOP500 supercomputers.
    That's big, but not monopoly big.
     
  13. schmidtbag

    schmidtbag Ancient Guru

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    Not yet it isn't, but it's not hard to predict where things could go from there. For example, Nvidia could suddenly cut off the Mellanox sales for AMD-based systems. That means for AMD users, if they don't have another IB to go to, that means the customers might jump to Nvidia. Nvidia already supports OpenCL and other compute standards, so it's not like devs would have to re-write everything. By partnering with Mellanox, Nvidia could also supply more attractive pricing.
     
  14. Noisiv

    Noisiv Ancient Guru

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    why would nvidia kill their own sales?

    Nvidia + AMD have already been married in Top500 systems
     
  15. schmidtbag

    schmidtbag Ancient Guru

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    You aren't looking at the broad picture. They can do with Mellanox what they did with Ageia's PhysX. PhysX used to be something anyone could hardware accelerate, regardless of platform. Although nothing prevents you from running PhysX now, the hardware-accelerated aspect became an exclusive feature to Nvidia. At the time Ageia was acquired, many people (myself included) deliberately bought Nvidia for the extra benefit. Sure, there were ways to install both AMD and Nvidia drivers, but that was a pain to deal with. I would be shocked if Nvidia doesn't plan to do something similar with Mellanox's stuff.
    So they aren't going to kill their sales, they're probably going to increase them, hence me being worried, since they already have too much power in the server market.
     
    Last edited: Mar 11, 2019

  16. HardwareCaps

    HardwareCaps Master Guru

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    Well Mellanox actually is not a bad buy. It's a profitable and pretty big company, I just hope Mellanox will continue to to provide datacenters solutions regardless.
     
  17. JamesSneed

    JamesSneed Master Guru

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    If your stomach hurts try some Mellanox, now in a new green mint flavor.
     
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  18. mbk1969

    mbk1969 Ancient Guru

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    So many gurus wanting to look cool with their business analysis.
    Damn, I wish I had a bunch of cool looking words like theirs.

    PS If I knew studying the rocket science back in 90s that MBAs will attract all the girls in new millenium...
     
    Last edited: Mar 11, 2019
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  19. phatbx133

    phatbx133 Master Guru

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    That's hot 6.9 right there :p
     
  20. Yogi

    Yogi Master Guru

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    That's what you get for choosing a career that requires actual work /s
     
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