Microsoft officially announced the acquisition of DPU company Fungible to accelerate data center innovation

On January 9 local time, Microsoft officially announced the acquisition of Fungible. The company is a composable infrastructure provider designed to accelerate network and storage performance in data centers through efficient, low-power data processing units (DPUs).

According to the announcement, Fungible's technology helps to achieve reliable and secure high-performance, scalable, modular and other functional data center infrastructure.

The Fungible team will join Microsoft's data center infrastructure engineering team and will focus on providing multiple DPU solutions, networking innovations, and optimization of hardware systems.

The announcement further demonstrates Microsoft's commitment to making long-term differentiated investments in data center infrastructure, which enhances the company's broad range of technologies and product shelves, including offloading, improving latency, increasing data center server density, optimizing energy efficiency and reducing costs.

Blocks and Files also reported that the deal was worth $190 million. Microsoft will implement Fungible's technology in the data centers that power its Azure cloud platform.

Previously, Microsoft considered working with Fungible to develop custom chips at one point, but later decided to choose acquisitions rather than cooperation.

It is understood that Fungible is a start-up in the data field, founded in 2015 by Silicon Valley veterans Pradeep Sindhu and Bertrand Serlet.

Fungible has said that its DPU can improve the efficiency not only of servers but also of storage infrastructure. In addition, the company built the Fungible Storage Cluster flash system, which can perform up to 13 million data input and output operations per second, and has used its DPU technology to compress data and run erasure coding algorithms.