Nvidia Invests Over $900M in Enfabrica CEO and Technology

Nvidia has recently invested over $900 million to hire Enfabrica CEO Rochan Sankar and other employees from the AI hardware startup, along with licensing the company's technology. The transaction, involving cash and stock, is similar to recent AI talent acquisitions by Meta and Google. The deal was finalized last week, and Rochan Sankar has joined Nvidia.

Nvidia has been a key player in the AI boom that began with the launch of OpenAI's ChatGPT in late 2022. The company's GPUs are crucial for training large language models and enabling major cloud providers to offer AI services to clients.

Founded in 2019, Enfabrica claims its technology can connect over 100,000 GPUs, potentially helping Nvidia provide integrated systems around its chips, allowing clusters to function as a single computer.

Previously, Nvidia invested in Enfabrica during a $125 million Series B round in 2023 led by Atreides Management. The company's valuation was not disclosed at the time, but it was reported to have increased fivefold from its Series A funding.

Tech giants like Meta, Google, Microsoft, and Amazon have heavily invested in acquiring AI talent through deals resembling acquihires. These transactions allow companies to onboard top engineers and researchers without regulatory hurdles associated with acquisitions.