"According to a CNBC report on Thursday, Nvidia spent more than $900 million in cash and stock to hire Rochan Sankar, the CEO of AI chip startup Enfabrica, as well as several other employees at the company. Additionally, as part of the deal, Nvidia is allowed to license Enfabrica technology. The deal closed last week, and Sankar has already begun working at Nvidia, per CNBC's sources."
"The deal, which involves bringing in new talent, is similar to those conducted recently by Google and Meta. In June, Meta invested $14.3 billion in AI data training startup Scale AI. The deal involved former Scale AI CEO Alexandr Wang leaving the startup to join Meta's superintelligence team. Meanwhile, in July, Google signed a $2.4 billion agreement with AI coding startup Windsurf to hire the startup's CEO, Varun Mohan, as well as other employees."
Nvidia spent more than $900 million in cash and stock to hire Rochan Sankar, Enfabrica's CEO, along with several other employees, and obtained rights to license Enfabrica technology. Enfabrica's chips use specialized software and a system that incorporates cheaper memory to maintain data-center speeds while lowering AI operating costs. The transaction closed last week and Sankar has already begun working at Nvidia. The hiring-and-license approach mirrors recent moves by other tech giants, including Meta's investment in Scale AI and Google's agreement with Windsurf. Nvidia previously backed Enfabrica in a 2023 Series B round, and Enfabrica was valued around $600 million after a Series C.
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