Nvidia Strikes $900M Deal For Enfabrica Talent And GPU Networking Breakthrough

Sep 19 - According to sources, Nvidia NVDA pays more than $900 million to bring Enfabrica's CEO Rochan Sankar and other engineers onto its team and to license the startup's AI-hardware design.

The company uses a mix of cash and equity in the package and closes the deal last week. Enfabrica, founded in 2019, builds fabric technology that links huge numbers of GPUs so clusters behave like a single computer, a capability that fits well with Nvidia's push to sell integrated systems around its chips.

Nvidia previously backed Enfabrica in a $125 million Series B in 2023; investors later contributed roughly $115 million, leaving the startup's disclosed funding at about $240M$260M.

Industry watchers note similar moves from other big tech firms: Meta Platforms META struck a major AI deal with Scale, and Alphabet GOOGL has also paid for talent plus licensing in recent months.

Microsoft (MSFT), Amazon (AMZN) and Intel (INTC) all pursue talent-and-tech deals as they race to scale AI infrastructure. Nvidia says nothing beyond a standard comment policy; Enfabrica does not respond to requests for comment.