Nvidia confirmed the acquisition of the chip manufacturer company, Mellanox Technologies, for USD 7 billion.

It took Nvidia about 13 months to finalize the deal. The acquisition was first announced in March to takeover Mellanox. Subsequently, China’s regulators approved the takeover, after their colleagues from the US and the European Union (EU) did the same last year.

Nvidia CEO Jensen Huang, in an interview with CNBC, said, “This is a home run deal. Man, I’ve been dreaming about this.”

It is expected that the merger of the two companies will strengthen Nvidia with AI computing, networking, full-stack offering from processor to software, and the ability to scale next-generation data centers. Nvidia expects that joining hands with Mellanox will boost its earnings and cash flow. The California-based company is now well-equipped to challenge Intel.

“Our combined expertise, supported by a rich ecosystem of partners, will meet the challenge of surging global demand for consumer internet services, and the application of AI and accelerated data science from cloud to edge to robotics.”

Nvidia also acquired storage firm SwiftStack in March 2020. However, the financial terms are not disclosed yet.

After the company successfully closed the deal to purchase Mellanox for USD 7 billion, the stock price of Nvidia closed the day at more than 2.5% higher.