Hot on the heels of Nvidia's Mellanox acquisition, EE Times reports that Facebook has acquired Sonics, a Silicon Valley-based IP provider that specializes in on-chip networking and power management. The report initially came from sources claiming "key Sonics executive members are now working for Facebook," but Facebook contacted EE Times shortly after the article went live and confirmed the acquisition. They said "we're rapidly developing new VR and AR products and deepening our technology expertise in silicon is an important step for our 10-year roadmap. We're excited to welcome the remarkable Sonics team and technology to AR/VR at Facebook." However, what's particularly interesting is what Facebook could do with the newly acquired company outside of standalone AR/VR headsets. The publication asked the social media giant if they intended to use Sonic's IP for datacenter chips, and Facebook said "It's too early to rule out anything. But our initial focus will be VR and AR." While that's certainly far from a confirmation, it's not a denial either, and the technology I see on an archived version of Sonic's website and their YouTube Channel seemingly lends itself to high performance datacenter chips. In other words, this could be evidence that Facebook is following in the footsteps of Amazon, and working on their own datacenter hardware to reduce their reliance on 3rd parties. "It would indicate to me that Facebook is indeed working on its own multicore, and probably heterogeneous, processor," Krewell said. Of course, that's what all the cool cloud players are apparently doing these days, he added. Mike Demler, senior analyst at the Linley Group, however, is the only one who suggested, "Yes, Facebook designs ASICs for its data centers, but they also may develop chips for Oculus VR headsets." Surprising to Krewell, though, is that Facebook bought the company rather than just licensing the technology. Linley has another theory. "If the Facebook team decided to use Sonics IP, and Sonics was running out of money, Facebook could have stepped in to ensure the continuity of its design project." He said this would be similar to what happened in the case of Intel's NetSpeed acquisition deal last year.