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Nvidia CEO says no plans for more acquisitions after Mellanox deal

TEL AVIV (Reuters) – the U.S. chip supplier Nvidia Corp. has no plans for further acquisitions for the time after her almost $7 billion acquisition of Israeli chip designer Mellanox Technologies, its chief executive said on Tuesday.

FILE PHOTO: Jensen Huang, CEO of Nvidia, shows the NVIDIA Volta GPU computing platform in his keynote at the CES in Las Vegas, Nevada, USA January 7, 2018. REUTERS/Rick Wilking/File Photo

“I want to have money and so I plan to save money for a while,” Jensen Huang told the Calcalist business conference in Tel Aviv. “This is a great purchase. I’m not looking for another.”

Nvidia earlier this month agreed to buy Mellanox for $6.8 billion, beating rival Intel Corp in a deal to help the company to the data center and the artificial intelligence (AI).

“Everybody wanted it,” Huang said. When asked if he paid too much, he said: “Beyond imagination.”

“But the company has created amazing technology that has a great future,” he said.

Nvidia, once known as a supplier of chips, now also offers chips to speed up AI tasks, such as teaching servers to recognize images. Mellanox makes chips that connect to these servers in the data center.

“Our strategy is that we would want to double down on data centers. The future of computing is heavily focused on data centers,” Huang said.

Nvidia gets about a quarter of the revenue from data centers, with $2.9 billion in sales in 2018, with the segment growing by 52% year-on-year.

Huang noted that after the deal with Mellanox, which is expected at the end of the year, there would be no cost sharing and the Mellanox brand should be maintained.

“We’re going to keep each product line.

We plan to keep track of every employee,” he said, noting he was planning to grow Mellanox in Israel. “There is no overlap and there are no cost synergies.”

Huang said investors were initially wary about the acquisition. But since the announcement on March 11, Nvidia’s shares have risen 15 percent to $173.80.

Edited by Mark Potter

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