Late January it was reported that Intel is looking to buy out Israeli networking hardware maker Mellanox Technology, in what looked like a cakewalk USD $6 billion deal at the time, which was a 35 percent premium over the valuation of Mellanox. Turns out, Intel hasn't closed the deal, and there are other big tech players in the foray for Mellanox, the most notable being NVIDIA. The GPU giant has reportedly offered Mellanox a competitive bid of $7 billion.

NVIDIA eyes a slice of the data-center networking hardware pie since the company has invested heavily in GPU-based AI accelerators and its own high-bandwidth interconnect dubbed NVLink, and now needs to complete its hardware ecosystem with NICs and switches under its own brand. Founded in 1999 in Yoqneam, Israel, Mellanox designs high performance network processors and fully-built NICs in a wide range of data-center relevant interconnects. Intel is by far the biggest tech company operating in Israel, with not just R&D centers, but also manufacturing sites, in stark contrast to NVIDIA, which opened its first R&D office in 2017 with a few hundred employees.

Update: NVIDIA's bid for Mellanox stands at $7 billion.