Nvidia spent over $900 million to hire Enfabrica CEO Rochan Sankar and other AI hardware startup staff – CNBC

Nvidia spent over $900 million to hire Enfabrica CEO Rochan Sankar and other AI hardware startup staff – CNBC

Nvidia has made a substantial investment by hiring Enfabrica CEO Rochan Sankar and other AI hardware startup staff, spending over $900 million in the process. The deal, which closed last week, includes cash and stock components, reminiscent of high-profile acquisitions by tech giants such as Meta and Google .

Enfabrica, founded in 2019, specializes in technology that can connect more than 100,000 GPUs together, a solution that could significantly enhance Nvidia's integrated systems around its chips. This acquisition aligns with Nvidia's strategy to expand its AI capabilities and maintain its position as a leader in the AI hardware market .

The acquisition is part of Nvidia's broader initiative to invest in AI technologies and infrastructure. The company has previously invested in other AI startups, such as Mellanox, Run:ai, and Nscale. Nvidia's investment in Enfabrica follows its recent announcement of a $5 billion stake in Intel, with plans to collaborate on AI processors .

The deal underscores Nvidia's commitment to innovation and its ability to attract top talent in the AI sector. By acquiring Enfabrica's technology and expertise, Nvidia aims to strengthen its offerings and maintain its competitive edge in the rapidly evolving AI market .