Microsoft acquires Fungible to accelerate datacenter innovation

January 10, 2023

Fungible is now officially a part of Microsoft. Both Microsoft and Fungible and Microsoft posted about the acquisition on their respective websites. The acquisition will help Microsoft enhance its Data Center Infrastructure effort. However, both companies are silent on how much the deal cost Microsoft.

For those who do not know, Fungible was invented in 2016, and addressing the problems in scale-out data centers was its purpose. It is a provider of composable infrastructure in datacenters with high-efficiency, low-power data processing units (DPUs). Now that the acquisition is complete, Fungible engineering teams will deliver multiple DPU solutions, network innovation, and hardware systems advancements, which will accelerate networking and storage performance in datacenters and help Microsoft enable high-performance, scalable, disaggregated, scaled-out datacenter infrastructure with reliability and security.

In the acquisition, Fungible said the following:

We are proud to be part of a company that shares Fungible’s vision and will leverage the Fungible DPU and software to enhance its storage and networking offerings. We would like to thank our loyal employees for their dedication and hard work over these last seven years and our customers, partners, and investors for their belief and support in our technology.

Microsoft, on the other hand, noted:

Today’s announcement further signals Microsoft’s commitment to long-term differentiated investments in our datacenter infrastructure, which enhances our broad range of technologies and offerings including offloading, improving latency, increasing datacenter server density, optimizing energy efficiency and reducing costs.

In other Microsoft-related news, Microsoft is planning to inject OpenAI’s ChatGPT language AI tool into its Office apps. Bing will be the first Microsoft service to get the ChatGPT treatment as early as this March, according to reports.

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