Microsoft acquires Fungible for DPU capability

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By Peter Clarke

Microsoft Corp. has acquired startup Fungible Inc. (Santa Clara, Calif.), a company that had developed a data processing unit (DPU) relevant to the data center.

Fungible was co-founded by Pradeep Sindhu, founder of Juniper Networks, and Apple’s former software engineering leader, Bertrand Serlet, in 2015.

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

The purchase price was not disclosed but it is reported to be around $190 million

This would not appear to represent a good premium for investors. Fungible was reported to have raised more than $300 million including $200 million in a Series C round announced in June 2019. Norwest Venture Partners and SoftBank Group Vision fund took part in the Series C. Samsung Catalyst in the Series B and Mayfield in the Series A.

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