Why Would Nvidia Invest $2 Billion in a Company Helping Build an Alternative to NVLink?
Why would Nvidia invest $2 billion in a company that helps customers build alternatives to its own technology? Marvell's unusual position across custom AI chips, NVLink, UALink, copper, and optical networking may reveal how Nvidia plans to compete as AI infrastructure becomes more modular.
Overview
Imagine AT&T joined a coalition building an alternative to Verizon's network. Then Verizon invested $2 billion in AT&T. After that, Verizon asked AT&T to make its devices and network infrastructure compatible with Verizon's network, too.
That sounds strange. Why invest in a company helping build an alternative to your own network? A version of that relationship is now taking shape in artificial intelligence.
Details
Marvell Technology (NASDAQ: MRVL) supports UALink, an open interconnect standard designed to give AI chipmakers an alternative to Nvidia's (NASDAQ: NVDA) proprietary NVLink fabric. Marvell has developed technology that can help customers build custom accelerators, switches, and scale-up networks around the standard.
Source
Originally published at www.fool.com.