Nvidia’s Mellanox and Other Acquisitions Business & Marketing Essay (Essay Sample)

Nvidia’s Mellanox and Other Acquisitions
Student Name
Institution
Nvidia’s Mellanox and Other Acquisitions.
Many acquisitions by companies are being executed each day. This is done by companies who either want to venture into a new market or who want to increase their production, and instead of starting from scratch, they choose to purchase more than 50% shares of another company. In this case, Nvidia acquired Mellanox, which offers technologies ranging from adapters, cables, switches, software and silicon in the high-performance, enterprise center with high computing needs, cloud service and storage services (Olmos, 2020). Nvidia acquired Mellanox for the US $6.9 billion.
Comparing this acquisition of Mellanox with other acquisitions by Nvidia, this was a bold move. It is one of the most expensive acquisitions that the company has ever done. It is the largest acquisition in its two- decade history after listing as a public company. Mellanox makes high-performance gears for speed communications. The acquisition will allow Nvidia to develop its graphic chips and stack them into datacenters with high AI capabilities in the clouds (Guyon et al. 2020). This acquisition was made by necessity since Nvidia wanted to meet the demand, with data centers holistic architecture connecting a significantly high computing node (Hanson, 2020) over a network that is intelligent enough to act as a large central data center.