Nvidia Corp. NVDA has reportedly struck a deal worth more than $900 million to bring on Enfabrica CEO Rochan Sankar and key employees while licensing the startup’s technology designed to link over 100,000 GPUs into unified systems.
Nvidia Expands With Enfabrica Deal
On Thursday, CNBC reported that the transaction, finalized last week, combines cash and stock. Sankar has already joined Nvidia as part of the agreement, according to people familiar with the matter.
The move marks one of Nvidia’s largest acquihire-style deals, giving it both top talent and cutting-edge networking technology.
Enfabrica, founded in 2019, developed solutions that allow massive GPU clusters to operate as a single computer. Such capabilities are crucial for Nvidia as it scales its data center offerings to meet soaring demand for artificial intelligence infrastructure.
See Also : Intel Growth Challenges Are Not Over Despite Altera Stake Sale: Analyst
Building Supercomputer-Scale Systems
Earlier Nvidia chips, like the A100, were deployed individually. By contrast, Nvidia’s most advanced products are now shipped in racks of 72 GPUs that can be clustered in billion-dollar data centers, such as Microsoft Corporation’s MSFT $4 billion facility in Wisconsin.
By licensing Enfabrica’s networking technology, Nvidia can expand beyond racks into supercomputer-scale systems with hundreds of thousands of GPUs tied together.
Nvidia’s Step Follows Wave Of AI Talent Deals
Nvidia’s move mirrors acquisitions by rivals seeking to capture elite AI talent without navigating lengthy regulatory reviews.
Meta Platforms, Inc. META spent $14.3 billion in June to hire Scale AI founder Alexandr Wang and his team, while Alphabet Inc.’s GOOG GOOGL Google announced a $2.4 billion deal a month later for Windsurf co-founder Varun Mohan and employees.
Microsoft and Amazon.com, Inc. AMZN have also completed similar transactions.
While Nvidia has invested in AI startups and closed select acquisitions such as Mellanox in 2019 and Run:ai in 2024, it has been less active in major buyouts.
In June, Nvidia reportedly acquired Canadian AI startup CentML, appointing its CEO, Gennady Pekhimenko, as a senior director for AI software.
In August, Nvidia joined a new $863 million funding round for Commonwealth Fusion Systems, adding to the company’s previous backers like Google and Bill Gates.
On Thursday, Nvidia also disclosed a $5 billion stake in Intel Corporation NVDA alongside plans to jointly develop AI processors. The chipmaker also confirmed a nearly $700 million investment this week in U.K.-based data center startup Nscale.
Price Action: Nvidia shares climbed 3.49% during Thursday’s session and added modest gains after hours, according to Benzinga Pro.
Benzinga’s Edge Stock Rankings show that NVDA continues to trend upward in medium and long-term periods, but downward in short-term, with more detailed performance insights available here.
Read Next:
Cathie Wood Dumps Palantir As Stock Touches Peak Prices, Bails On Soaring Flying-Taxi Maker Archer Aviation
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock/Hepha1st0s