Microsoft acquires data processing unit manufacturer Fungible to bolster Azure


Microsoft had paid about USD 190 million to acquire Fungible, a startup that made data processing units (DPUs), a type of hardware used in data centers. Microsoft announced today that it had acquired Fungible, and that it would make use of its technology and staff to provide multiple DPU solutions, network innovation, and hardware systems advancements.

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Girish Bablani, CVP of Microsoft’s Azure Core division, wrote in a blog post, “This announcement further signals Microsoft’s commitment to long-term differentiated investments in data center infrastructure. It will help enhance Fungible’s broad range of technologies and offerings, including offloading, improving latency, increasing data center server density, optimizing energy efficiency, and reducing costs.”

According to Bablani, the Fungible team will work with the Microsoft data center infrastructure engineering teams.