Microsoft Acquires Fungible to Accelerate Data Center Innovation

Microsoft announced its acquisition ofENGable (photo: Unsplash)

JAKARTA - Microsoft has finally confirmed a report last December saying that it was acquiring Fungible, a startup that provides infrastructure for data center hardware known as data processing units (DPUs).

"Today, Microsoft announced the acquisition of Fungible Inc., a composable infrastructure provider aimed at accelerating network and storage performance in data centers with high-efficiency, low-power data processing units (DPUs)," wrote Girish Bablani, Enterprise Vice President, Azure Core in his blog on Monday, January 9.

Microsoft acquires Fungible, which makes data-processing units (DPUs) for data-centric computations in server nodes: https://t.co/3mf5ghHz1x

— Mary Jo Foley (@maryjofoley) January 9, 2023

According to the tech giant, Fungible technology can help them enable high-performance, scalable, disaggregated and also scalable data center infrastructure with reliability and security.

With the acquisition, the Fungible team will join Microsoft's data center infrastructure engineering team and will focus on providing DPU solutions, network innovation, and system hardware advancements.

Microsoft did not mention how much they spent to acquire Fungible, but citing a report last December via TechCrunch, Microsoft managed to buy Fungible for USD 190 million or IDR 2.96 trillion.

"Today's announcement further signifies Microsoft's commitment to long-term differentiated investments in our data center infrastructure, which enhance our broad range of technologies and offerings including offloading, increasing latency, increasing data center server density, optimizing energy efficiency, and reducing costs," concluded Microsoft