Nvidia Invests $900M in Enfabrica to Bolster AI Hardware Capabilities

Nvidia continues its aggressive expansion into AI infrastructure with a $900 million investment in Enfabrica, acquiring both talent and technology licenses. The MOVE follows Nvidia's earlier $125 million Series B participation in 2023, highlighting accelerated bets on GPU scaling solutions.

Enfabrica's networking technology enables interconnection of over 100,000 GPUs—a critical capability as demand for AI compute clusters surges. The startup's valuation has multiplied fivefold since its Series A funding, with Spark Capital leading a $115 million Series C round in late 2024.

The semiconductor giant is deploying capital strategically across the AI stack, from data centers (Nscale) to struggling chipmakers (Intel). This latest transaction suggests Nvidia is vertically integrating to maintain dominance in the AI hardware ecosystem.