Nvidia Invests $900M in AI Startup Enfabrica for Talent and Tech Acquisition
Nvidia, in one of its largest talent acquisitions to date, has invested over $900 million in cash and stock to onboard Enfabrica CEO Rochan Sankar and key employees. In addition, the tech giant has also licensed the AI hardware startup’s groundbreaking technology. The deal, which was finalized on September 18, 2025, marks Nvidia’s strategic initiative to tackle one of AI’s most significant challenges: integrating massive GPU clusters to function as unified computing systems.
Established in 2019, Enfabrica specializes in semiconductor interconnect technology capable of connecting over 100,000 GPUs into a single network. This unique capability is vital for large-scale AI data centers, as it minimizes latency and maximizes performance for training and deploying extensive language models. The startup’s technology addresses a critical bottleneck where costly GPUs often remain idle, waiting for data due to slow network connections.
This acquisition is a follow-up to Nvidia’s previous investment of $125 million in Enfabrica’s Series B round in 2023. Enfabrica was most recently valued at approximately $600 million after a $115 million Series C round that saw investments from tech giants like Samsung, Cisco, and ARM.
This deal is a part of Nvidia’s broader expansion strategy, which includes:
- A $5 billion investment in Intel
- Nearly $700 million in UK data center startup Nscale
Source: CNBC