Microsoft Acquires Fungible

Microsoft acquires Fungible following somewhat confusing news and development. Microsoft has officially announced that it will be acquiring Fungible. This is the most significant deal yet to advance its Azure cloud computing platform.

Microsoft has finally confirmed its acquisition of the company in a move that will see it acquire the company’s high-efficiency, low-power data processing units. This followed reports of a prospective merger in December 2022. And earlier suggestions of a failed Meta takeover (DPUs).

Fungible states on its website that it is “glad” to now be a part of Microsoft because it “shares its goal.” And that its DPUs were developed in 2016 in response to the ineffective execution of data-centric computations within server nodes.


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Microsoft acquires Fungible and DPUs

“Fungible’s technologies help offer high-performance, scalable, disaggregated, scaled-out datacenter architecture with reliability and security,” explained Girish Bablani, Azure Core Corporate VP.

He continued, “Today’s announcement further signals Microsoft’s commitment to long-term, differentiated investments in our data center infrastructure.”

“Which enhances our wide array of technologies and offerings, including offloading, improving latency, increasing data center server density, optimizing energy efficiency, and lowering costs.”

But Fungible isn’t the only player in the market. Nvidia and Intel, among others, are fierce competitors. With Microsoft’s acquisition, it is hoped that it will get the support it needs to keep creating DPUs for Azure’s cloud services.

According to The Register, “Fungible’s storage hardware has made it onto VMware’s hardware compatibility list, its DPUs have not.” This could be a welcome boost for a tiny business that has previously struggled.

It is unclear what Microsoft’s actual plans are for the business. And it’s unlikely that we will ever learn whether Fungible will be adopted. Or perhaps completely redesigned, or otherwise discontinued.

The Fungible team will, according to Bablani, “join Microsoft’s data center infrastructure engineering teams and will focus on delivering numerous DPU solutions, network innovation, and hardware systems enhancements.”


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