Microsoft Acquires Fungible to Improve Datacenter Efficiency

Microsoft announced today that it has acquired Fungible, a datacenter infrastructure firm, for a rumored $190 million. Microsoft did not disclose the terms of the deal.

“Today, Microsoft is announcing the acquisition of Fungible Inc., a provider of composable infrastructure aimed at accelerating networking and storage performance in datacenters with high-efficiency, low-power data processing units (DPUs),” the Microsoft announcement notes. “Fungible’s technologies help enable high-performance, scalable, disaggregated, scaled-out datacenter infrastructure with reliability and security.”

“Fungible has become part of Microsoft,” a related Fungible announcement adds. “The Fungible DPU was invented in 2016 to address the most significant problems in scale-out data centers: the inefficient execution of data-centric computations within server nodes. 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.”

DPUs are designed to help reduce the load on CPUs and GPUs for core computing tasks. Microsoft says that the Fungible team will join its datacenter infrastructure engineering teams, where it will focus on delivering multiple DPU solutions, network innovation, and hardware systems advancements.

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