On Thursday, Nvidia announced it acquired data management firm SwiftStack for an undisclosed sum. However, PrivCo pegged the company’s worth at between $50 million and $100 million. Prior to its acquisition, the startup provided its enterprise clients with innovative cloud storage and analysis products.
In a press statement, SwiftStack CFO Joe Arnold said his team would be developing AI supercomputers for Nvidia.
What Does SwiftStack Do?
Founded in 2011, the San Francisco-based SwiftStack made its name designing software-based data storage and management products. Notably, the firm’s cutting-edge platform allows businesses to move their information across a cloud, edge, data center infrastructure. As such, its clients could secure their files and applications in a secure, geographically distributed virtual environment.
The firm had also been a significant contributor to the OpenStack open-source swift object storage project.
In addition, SwiftStack offered its customers a scalable data management solution. The startup’s objects storage started at the terabyte level with room to expand to hundreds of petabytes.
In recent years, SwiftStack unveiled some compelling artificial intelligence (AI) and machine learning (ML) products. Last March, the startup announced the release of an AI/ML solution capable of storage parallelism and throughput at a massive scale. The firm deployed its new stack to help train two driverless vehicle platforms.
Because of the innovative nature of its products, SwiftStack landed $23.6 million in outside funding in its nine-year existence. The startup also won the business of large corporate clients such as eBay, Verizon, and PayPal.
Why Nvidia Purchased SwiftStack
SwiftStack also counted Nvidia as one of its customers. In fact, Arnold noted his startup had spent a year working with the hardware company to enable AI functions at scale. As such, it seems the chipmaker bought its new subsidiary to continue that work in a more focused fashion.
Although best known for its GPUs, Nvidia has recently expanded into the supercomputing, AI, and Internet of Things (IoT) sectors. At last year’s Mobile World Congress, the corporation debuted its EGX Edge Supercomputing Platform, an ecosystem that utilizes AI to process vast quantities of data. Consequently, the chipmaker is smart to acquire a startup that develops technology that accelerates enterprise data management tasks.
Indeed, Nvidia’s head of enterprise computing Manuvir Das told Blocks and Files his firm “does not want to become a storage company.” Instead, the corporation will utilize SwiftStack’s tech to optimize its internal operations and those of its clients.