Computer manufacturing firm, Hewlett Packard announced that it has recently purchased Cray Inc. which is manufacturer of fastest supercomputers in the world. The machines made by Cray Inc. are fast enough to decipher trillions of data and process equal number of calculations every second. Due to their capability to process data at a rapid pace these machines are used by GCHQ and the Meteorological office of UK. After this announcement that the deal was finalized for $1.3 billion the shares of Cray jumped up by 18 %.
CEO Antonio Neri of Hewlett Packard stated that the deal was made keeping long term needs in mind as the answer to world’s most pressing problems is buried under massive amounts of data. Processing and analysis of these massive amounts of information will help to find answers to critical problems plaguing the world today like climate change, health issues, space exploration, poverty and several others. Cray In was created way back in 1950 by Seymour Cray and is recognized for creating the first successful super computer in the world. Since then the firm’s supercomputers have featured several times in top 500 super computers in the world.
The firm since then has been making products for data analysis and storage for explorative purposes like artificial intelligence which is likely to grow from $28 million in 2018 to more than $35 billion by 2021. To acquire Cray HPE has agreed to pay around $35 per share which currently employs 1300 people at its development facility in Seattle. Cray’s revenues during last financial year was at $456 million as since its creations it has manufactured supercomputers at its main base in Chippewa Falls Wisconsin before moving on to its current office at Seattle. In the years since it was founded it has bought and sold by several owners as demand for its products has slowed and risen. But HPE says that sale of high performance computers is likely to rise by 9 % every year across 2020.