Hewlett Packard Enterprise (HPE) is in advanced discussions to acquire Juniper Networks, reports Reuters, citing sources.
A deal could value the California-based networking solutions manufacturer at approximately $13bn.
Sources told the publication that an announcement could come as early as week commencing 7 January 2024.
The acquisition is expected to enhance HPE’s artificial intelligence (AI) capabilities, building on its history as a leading player in the US technology sector since 1939.
HPE offers an array of products and solutions such as data centre equipment and cloud services to various customers, including small businesses, enterprises, and governments.
Juniper Networks’ product portfolio includes routeing, switching, network security, AI-powered enterprise networking operations, wireless fidelity, and software-defined networking solutions.
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While HPE declined to comment, Juniper Networks did not respond to Reuters’ request for comment.
The potential deal comes at a time when HPE is actively expanding its AI offerings.
In June 2023, HPE announced a new cloud computing service aimed at powering AI systems akin to ChatGPT.
Recently, HPE collaborated with Germany’s University of Stuttgart to construct two supercomputers.
The supercomputers, costing €115m ($126.09m), are funded by the Gauss Center for Supercomputing and will be housed at the Stuttgart High Performance Computing Centre.
The first computer, called Hunter, will go online in 2025, while the exascale system, called Herder, will go online in 2027.
Herder and Hunter will both contribute to the university’s data analysis and AI studies as well as providing simulation infrastructure.
In November 2023, the company also partnered with NVIDIA to launch an enterprise computing solution as part of an expanded partnership that delivers full-stack AI solutions.
These solutions encompass AI-native and hybrid cloud offerings for machine learning development, data analytics, AI-optimised file storage, and professional services.
