US chipmaker Nvidia’s $ 6.8 billion acquisition of Israeli chipmaker Mellanox Technologies will receive unconditional EU approval. Nvidia is seeking acquisitions to boost its data center and artificial intelligence businesses. The acquisition of Mellanox Technologies is its largest acquisition and will help it better compete with rival Intel.
The European Commission is expected to make a decision on the acquisition on December 19 local time. In response to the above news, the European Commission declined to comment. Nvidia and Mellanox Technologies also declined to comment.
U.S. government regulators have unconditionally approved the acquisition, but the acquisition requires approval from Chinese government regulators. In the Chinese market, Mellanox Technologies has important customers such as Alibaba and Baidu.
Nvidia, once a gaming chip supplier and known for its powerful gaming graphics chip products, now also offers artificial intelligence chips that can accelerate the execution of artificial intelligence tasks. For example, it enables the server to recognize the image. Mellanox is a provider of end-to-end connectivity solutions for servers and storage. It manufactures chips that connect such servers in data centers.
Intel also tried to acquire the Israeli chip company, but ultimately failed, allowing Nvidia’s acquisition of Mellanox Technologies to succeed.