Nvidia is approaching $ 7 billion deal to buy chip maker Mellanox: report

Nvidia Corp.

NVDA, + 0.92%

approaches an agreement to buy the co-maker Mellanox Technologies Ltd.

MLNX, + 0.04%

for more than $ 7 billion, Reuters reported Sunday. The all-cash deal will be the biggest ever for Nvidia. Mellanox makes chips for data center servers, which will help spread Nvidia away from being so dependent on chips for video game computers. Reuters said Nvidia outbid competitor Intel Corp.

INTC, -0.23%

in an auction for Mellanox, and a deal could be announced as soon as Monday.

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