Nvidia has received numerous offers from Israeli municipalities and organizations seeking to host the company’s planned massive campus expansion, as the U.S. artificial intelligence chip giant looks to significantly grow its operations in the country.
The Santa Clara, Calif.-based company, the first company in the world valued at $4 trillion, issued a request for information this week to acquire land for a new facility near its existing northern Israel campus.
The move comes less than a decade after its acquisition of Israeli-based Mellanox in Yokneam Illit, which transformed the AI industry and made the AI revolution possible.
Industry sources told Reuters that the new project could cost billions of dollars and create thousands of jobs. The world’s most valuable company by market capitalization has set a July 23 deadline for offers to build its campus of up to 180,000 square meters (1.94 million square feet).
Officials familiar with the matter told Reuters that Nvidia received “dozens and dozens and dozens” of offers from municipalities and other entities, not all located near Haifa. The company’s current Israeli operations are based in Yokneam, situated near the northern port city of Haifa, where numerous technology companies maintain facilities.
Nvidia acquired its Israel presence in 2020 through the purchase of Mellanox Technologies for nearly $7 billion. The company has since expanded its workforce dramatically, nearly tripling in size since the acquisition.
According to Reuters, sources indicated that Mellanox contributed $13 billion in revenue to Nvidia last year, though the company has not confirmed this figure.
The Haifa municipality expressed confidence in its bid for the new campus. Officials told Reuters that they are “currently busy preparing an attractive offer for the company” and believe they represent “the city with the best potential for them.”
The expansion comes as major technology companies including Microsoft, Amazon, Meta Platforms, Alphabet and Tesla compete to build AI data centers and dominate the emerging technology sector. This competition has led to a surge in demand for Nvidia’s high-end processors, driving the company’s remarkable growth trajectory.
At least 3,000 jobs
One source familiar with the matter told Reuters that Israel’s expertise was “extremely important to the AI era” and that Nvidia needed to expand rapidly to meet demand. The company employs 5,000 workers in Israel and has made several additional acquisitions in the country over recent years.
According to information obtained by Israel Hayom, the planned center could accommodate at least 3,000 employees, with the project expected to unfold over several years.
The geographical boundaries outlined by Nvidia include the area between Highway 67, Highway 73, Highway 781 and the Coastal Highway. The company emphasized that the land must be designated for high-tech use, with “high transportation accessibility” and proximity to major traffic routes and public transportation.
Nvidia further stressed that the requested land must be available for immediate construction, purchase and allocation.
Nvidia has also constructed Israel’s most powerful AI supercomputer, which served as a blueprint for Elon Musk’s Colossus supercomputer. The facility demonstrates the company’s commitment to maintaining cutting-edge infrastructure in the region.
Dror Bin, CEO of the Israel Innovation Authority, described the planned campus as massive and capable of housing “a few thousand employees.” He told Reuters that “Nvidia sees its operation in Israel as something which is going to stay here for a very long time and to expand here.
“This declaration is a sign of confidence in Israel,” Bin added, according to Reuters.
The expansion announcement comes as rival Intel faces challenges in the region. Intel, which has operated in Israel since 1974 and employs 9,350 workers in the country, has begun trimming its workforce globally. Israeli media reported that several hundred workers in Israel are being made redundant, though a local spokesperson declined to comment on specific numbers.
The spokesperson only referenced Intel CEO Lip-Bu Tan’s April comments that the company was “taking steps to become a leaner, faster and more efficient company,” according to Reuters.
Originally published by Israel Hayom.
