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from GPUs to gaming to data centers

This week, NVIDIA announced the purchase of Mellanox, a major manufacturer of data center and high-performance computer communication equipment (HPC), for $ 6.9 billion. And such an atypical acquisition for GPU developers, for which NVIDIA even decided to surpass Intel, is not at all random. As CEO of NVIDIA Jen-Hsun Huang commented on this business, buying Mellanox was a very important investment for the company as it is a global change of strategy.

The fact that NVIDIA has been trying to increase revenue for a long time, from the sale of equipment for supercomputers and data centers, is not a secret. GPU applications outside of gaming computers are multiplying each day, and Mellanox Intellectual Property should help NVIDIA develop its own large data solutions. The fact that NVIDIA was ready to spend a huge amount on the purchase of a communications company well reflects the attention devoted to this area. Moreover, players should no longer have an illusion: meeting their interests for NVIDIA ceases to be the primary goal.

This was directly said by Jensen Huang in his interview HPC wirewhich took place after the announcement of the purchase of Mellanox. "Data centers are the most important computers today and in the future. Workloads continue to change due to artificial intelligence, machine learning, and large data analysis, so future data centers will be built as massive manufacturing computers. We were the GPU company, and then we became the manufacturer of the GPU platform. Now we have become a computer company that started with chips and expanded to the data center level.".

Let's remember, Mellanox is an Israeli company that has advanced technology for linking nodes in data centers and high performance systems. Today, Mellanox networking solutions are being used, including the DGX-2 – a supercomputer system based on Volta Graphics Processors, which NVIDIA offers to solve problems in the area of ​​deep training and data analysis.

"We believe that in future datacenters, computing will not start and end on servers. The calculations have spread to the net. In the long run, I think we have the ability to create computer architectures on the data center scale."- explains the meaning of acquiring Mellanox's executive director of NVIDIA. Indeed, NVIDIA now has the required technology to build complex high-performance solutions, including GPUs and external connections.

While NVIDIA continues to maintain its strong dependence on the graphics gaming market. Despite all the efforts invested, players continue to bring most of the company's revenue. Thus, in the fourth quarter of last year, NVIDIA earned $ 954 million of gaming equipment sales, while the company earned less than $ 679 million in data center solutions. the implementation of graphics cards for gambling fell by 45%. And this leaves no doubt that NVIDIA will focus on data centers and high-performance computers in the future.

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