US chipmaker Intel has bid about $5.5 - 5.6 billion to acquire Israeli big data connectivity company Mellanox Technologies Ltd. (Nasdaq:MLNX), sources inform "Globes." The bid represents a 30% premium on Mellanox's closing price on Nasdaq last night.
The report of Intel's interest comes a day after confirmation that the chipmaker plans investing $11 billion in a new fab in Kiryat Gat.
Oh no. This would be absolutely terrible. Intel is the only company competing with Mellanox in the HPC networking space. Mellanox makes Infiniband, and Intel makes OmniPath, which is an Infiniband clone. This is the tech that systems use to communicate between nodes directly in memory and target things like SAN addresses. Mellanox Infiniband tech is also what they have built in on things like Nvidia DGX systems for AI/deep learning clusters. This would make a complete monopoly for Intel here.
it is also very bad for Ethernet space too. Mellanox is one of the very top players pushing tech, and is so universal throughout every computer sector that their drivers come built in to all versions of consumer and server Windows. Mellanox also has better driver support than Intel, in that they support multiple generation old products all the way from XP into Windows 10. Mellanox also uses the same chipset for both Infiniband and Ethernet, allowing both protocols to run on the same NIC/HBA so that you can swap between them. Intel would kill this stuff completely so no one competes with their OmniPath products, and that would greatly affect the Ethernet side of things as well as we wouldnt have the #1 company pushing Ethernet boundaries anymore.
And for those of you who are on the "we dont need anything faster" train. It is this company pushing the boundaries that gets us our dirt cheap used 10gb and 40gb NICs on Ebay. When they come out with new products and the investment firms, military research labs, and disease research labs upgrade to the new gen they are the ones who throw their thousands of NICs onto Ebay for a few bucks. Once Intel kill this company, those cheap, really fast NICs for us are gone.