Key Insight
Nvidia spent over $900 million in cash and stock to hire Enfabrica CEO Rochan Sankar, bring on key staff, and license the startup’s technology to help network up to 100,000 AI chips in a single cluster—one of the largest acquihire and technology licensing deals of 2025.
Background:
In September 2025, Nvidia finalized a deal with Silicon Valley-based Enfabrica—founded by veterans from Broadcom and Alphabet—to address the growing bottleneck in AI infrastructure by enabling more efficient interconnection of tens of thousands of GPUs. The deal follows similar talent-focused moves in the AI sector, including Meta’s June 2025 stake in Scale AI and Google’s hires from Windsurf. Sankar, a 25-year industry veteran with 11 patents who previously led Broadcom’s data center Ethernet switching business, brings expertise in networking semiconductors to help Nvidia evolve from individual processors to complete AI systems.
Credit perplexity
https://www.perplexity.ai/page/nvidia-spends-over-900m-to-rec-qUzXS79QSKyy72DfNo9rOA