American chipmaker Nvidia has signed a deal worth more than $900 million to hire Enfabrica startup CEO Rochan Sankar and part of the team and license the company’s technology.
This was reported by CNBC, citing sources.
The sum includes cash and stock payments. As a result, Sankar joined Nvidia, and the deal became one of the largest for the company in the field of so-called acquihire – when technology giants buy not so much a product as a team and its expertise.
Neither NVIDIA nor Enfabrica officially commented on the deal.
Journalists note that Meta, Google, Microsoft, and Amazon have previously made similar deals.
Enfabrica, founded in 2019, develops technologies that allow connecting more than 100 thousand graphics processing units (GPUs) into a single system. This could strengthen Nvidia’s position, as its current products are sold as complete server solutions.
Back in 2023, Nvidia invested in Enfabrica as part of a $125 million funding round. Later, the startup raised another $115 million from Spark Capital, Arm, Samsung, and Cisco. According to PitchBook, its value was estimated at about $600 million at the time.
Despite active investments, Nvidia rarely makes large acquisitions. Its largest deal was the purchase of Israeli chipmaker Mellanox for $6.9 billion in 2019.
In 2022, the company tried to acquire Arm, but the deal was thwarted by regulators. Instead, in 2024, Nvidia closed the acquisition of Run:ai for $700 million.
As a reminder, Nvidia announced a $5 billion investment in Intel, instantly making the company one of the chipmaker’s largest shareholders.
The move came just a few weeks after the US government acquired a 10% stake in Intel.
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