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Nvidia CEO: no plans for more acquisitions after Mellanox deal

Nvidia CEO: no plans for more acquisitions after Mellanox deal

"I like to have money and so I am going to save money for a while"

Jensen Huang (Nvidia)

Jensen Huang (Nvidia)

Credit: Reuters

Nvidia has no plans for further acquisitions for the time being after its nearly $7 billion purchase of Mellanox Technologies, its CEO has revealed.

"I like to have money and so I am going to save money for a while," Jensen Huang told a Calcalist business conference in Tel Aviv. "This is a great acquisition. I am not looking for another."

Nvidia earlier this month agreed to buy Mellanox for $6.8 billion, beating rival Intel in a deal to help the firm boost its data centre and artificial intelligence (AI) business.

"Everybody wanted it," Huang said. When asked if he paid too much, he said: "Beyond imagination. But the company has created amazing technology and has a great future."

Nvidia, once known as a provider of gaming chips, now also provides chips to speed up AI tasks such as teaching servers to recognise images. Mellanox makes chips that connect those servers together inside the data centre.

"Our strategy is we would like to double down on data centres,” Huang said. “The future of computing is heavily focused on data centres.”

Nvidia gets about a quarter of its revenue from data centres, with the $2.9 billion in sales in 2018 from the segment growing 52 per cent year over year.

Huang noted that following the deal with Mellanox, which is expected to close by the end of the year, there would be no cost cuts and the Mellanox brand would be maintained.

"We are going to keep every single product line. We are going to keep every single employee," he said, noting he planned to grow Mellanox's business in Israel. "There is no overlap whatsoever and there are no cost synergies."

Huang said investors were initially wary about the acquisition. But since the deal's announcement on March 11, Nvidia's shares have risen 15 per cent to $173.80.

(Editing by Mark Potter)


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