Nvidia sets out plan to acquire Cumulus Networks

Jensen Huang, founder and CEO of NVIDIA Jensen Huang, founder and CEO of NVIDIA

Gaming chipmaker Nvidia has set out plans to acquire Cumulus Networks for an undisclosed sum.

The deal follows confirmation that Nvidia purchased Mellanox Technologies  in April for $7 billion, giving it all the tools necessary to gain market share in the areas of HPC and AI for cloud data centres.

In a blog post published yesterday (US time), Amit Katz, VP of Ethernet Switch at Mellanox, wrote: “The combination enables the new era of the accelerated, software-defined data centre.”

Elsewhere in the post, he added: “Cloud data centres are evolving to an architecture that is accelerated, disaggregated and software-defined to meet the exponential growth in AI and high performance computing. To build these modern data centers, HPC and networking hardware and software must go hand in hand.”

Cumulus, based in Mountain View, Calif., supports more than 100 hardware platforms with Cumulus Linux, its operating system for network switches. NVIDIA’s  ultrafast Mellanox Spectrum switches already ship with Cumulus Linux and SONiC, the open source offering forged in Microsoft’s Azure cloud and managed by the Open Compute Project.


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Katz’ piece continued: “With Cumulus, NVIDIA can innovate and optimise across the entire networking stack from chips and systems to software including analytics like Cumulus NetQ, delivering great performance and value to customers. This open networking platform is extensible and allows enterprise and cloud-scale data centers full control over their operations.”

“We’re delighted to join forces with Cumulus and look forward to the innovations we’ll deliver to customers together.”

Nvidia has enjoyed a strong start to 2020 following a 41% year on year increase in Q4 revenues to reach $3.11 billion. However, the company’s outlook for the first quarter of fiscal 2021 did not include any contribution from the then pending acquisition of Mellanox Technologies, Ltd – so it’s likely growth will continue to be strong.

That deal – first announced in March 2019 – was competed in April for $7 billion.

Nvidia was founded by Jensen Huang (pictured) in 1993 and has raised US$4 billion in funding.

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