Nvidia makes $900 million acquihire-style deal with AI hardware startup Enfabrica

Nvidia has spent more than $900 million to bring Enfabrica CEO Rochan Sankar, several of his team members, and key technology from the AI hardware startup into the company, CNBC reports.

The deal combined cash and stock and looks similar to an acquihire, where companies focus on hiring talent without buying the startup outright. Big tech firms like Google, Meta, and Microsoft often use this strategy to add AI specialists while avoiding lengthy acquisition processes.

Enfabrica builds networking technology that links large GPU clusters more efficiently - a capability Nvidia is betting will strengthen its AI infrastructure. The deal closed last week. Nvidia had already invested in Enfabrica in 2023.