Nvidia Scoops Up Enfabrica Team for $900M as AI Talent War Heats Up

TradingKey - Recently, global tech giants like Meta and Google have frequently been acquiring top AI talent through high-salary poaching and technology package deals, and now chip giant Nvidia has joined this trend.

According to sources familiar with the matter, Nvidia has spent over $900 million to successfully acquire the core team of AI hardware startup Enfabrica, including its CEO Rochan Sankar, and obtained licensing rights to the company's key technologies.

Enfabrica caught Nvidia's attention primarily due to its breakthrough technological capability — efficiently connecting more than 100,000 GPUs. This technology will provide Nvidia with critical integrated system solutions, enabling massive GPU clusters to work collaboratively as a single, powerful supercomputer, thus meeting the demands of future larger-scale and more complex AI model training and inference.

This transaction is not the first interaction between Nvidia and Enfabrica; in Enfabrica's $125 million Series B funding round completed in 2023, Nvidia participated as an investor.

Nvidia's move mirrors similar acquisitions by competitors, with this "talent and technology package" model becoming the mainstream approach for giants to rapidly bolster their AI capabilities.

For example, Meta recently invested $14.3 billion to bring in Scale AI founder Alexandr Wang's team while holding a 49% stake. Google acquired Windsurf co-founder Varun Mohan and the R&D team through a $2.4 billion agreement.

Earlier, Google, Microsoft, and Amazon had also brought in core talent from companies like Character.AI, Inflection, and Adept through similar transactions.

On Thursday, Nvidia's stock closed up 3.49% at $176.24. According to TradingKey Stock Score tool, Nvidia received a score of 7.10. Meanwhile, Wall Street analysts have set a target average price of $212.768 for the stock, indicating that the market generally believes its share price still has approximately 24.94% potential upside from current levels.

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