In a major strategic move within the competitive AI chip sector, NVIDIA has allocated over $900 million to bring on board Rochan Sankar, CEO of the AI hardware startup Enfabrica, along with key employees, while also securing licensing rights to the company’s technology.
According to sources familiar with the matter, the transaction was completed using a mix of cash and stock. The deal was finalized last week, with Sankar officially joining NVIDIA.
Based in Silicon Valley, Enfabrica has been tackling one of AI’s most complex technical challenges: efficiently connecting tens of thousands of chips into a cohesive, high-performance computing network. Without a high-speed network, even the most advanced chips—like those produced by NVIDIA—can sit idle during data transfers. Enfabrica’s technology shows strong potential in linking up to 100,000 AI compute chips before network congestion occurs.
Founded by veterans from Broadcom and Alphabet, Enfabrica had previously raised $260 million in venture funding. In July, the company launched a new chip and software system designed to control memory chip costs in data centers.
This acquisition mirrors recent industry moves from companies like Meta and Google. In June, Meta acquired a 49% stake in Scale AI and appointed its 28-year-old CEO Alexandr Wang to a significant role in shaping its AI strategy. Similarly, after OpenAI attempted to acquire programming tools company Windsurf, Google successfully recruited several of its key employees.
ICgoodFind Summary: NVIDIA’s acquisition enhances its technical capabilities and is likely to strengthen its leadership in the AI chip market, while also shifting competitive dynamics across the industry.
