Nvidia acquires SchedMD and launches Nemotron 3 to strengthen open-source AI infrastructure

Reviewed byNidhi Govil

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Nvidia acquired SchedMD, the developer behind Slurm, a critical open-source workload management system used in over half of the world's top supercomputers. The chip giant also unveiled Nemotron 3, a new family of open AI models designed for building efficient AI agents. Both moves signal Nvidia's strategic push to dominate the open-source AI ecosystem while competing with emerging rivals.

Nvidia Acquisition Secures Critical AI Infrastructure

Nvidia announced Monday it has acquired SchedMD, the leading developer of Slurm, an open-source workload management system that has become essential infrastructure for high-performance computing and AI

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. The semiconductor giant did not disclose financial terms of the deal but emphasized that Slurm will continue operating as open-source, vendor-neutral software

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. SchedMD was founded in 2010 by Morris Jette and Danny Auble, the original lead Slurm developers who launched the platform in 2002. Danny Auble currently serves as CEO of SchedMD, which employs approximately 40 people and serves several hundred customers including cloud providers, manufacturers, AI companies, research labs, government agencies, banks, and healthcare organizations

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Source: NVIDIA

Source: NVIDIA

Why Slurm Matters for Managing Server Clusters

Slurm has established itself as the dominant workload manager and job scheduler for AI workload management, used in more than half of both the top 10 and top 100 systems on the TOP500 list of supercomputers

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. Training large language models on a single graphics card proves prohibitively time-consuming, forcing companies to distribute workloads across numerous GPUs to enable parallel calculations. This approach creates significant complexity in determining which chip should perform specific sub-tasks and when, while avoiding situations where some GPUs remain underutilized

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Source: PYMNTS

Source: PYMNTS

Slurm automates these decisions with specialized features that make it better suited for AI training workloads than alternatives like Kubernetes. The platform can manage clusters with more than 100,000 GPUs and provides fine-grained customization options, allowing developers to place workloads that regularly exchange data on adjacent servers to minimize data travel distance

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Nvidia Launches Nemotron 3 Open AI Models

Alongside the SchedMD acquisition, Nvidia released Nemotron 3, which the company claims is the most efficient family of open models for building accurate AI agents

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. The model family includes three variants: Nemotron 3 Nano for targeted tasks, Nemotron 3 Super for multi-AI agent applications, and Nemotron 3 Ultra for more complicated tasks

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. Jensen Huang, founder and CEO of Nvidia, stated in the press release that "open innovation is the foundation of AI progress" and that Nemotron transforms advanced AI into an open platform giving developers the transparency and efficiency needed to build agentic systems at scale

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Strategic Push Into Open-Source Software Ecosystem

The dual announcements reflect Nvidia's intensified focus on open-source AI as competition heats up in the AI industry. The chip designer built its reputation on speedy chips, but now offers a range of its own open AI models, from physics simulations to self-driving vehicles, as open-source software that researchers and companies can use

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. Nvidia has collaborated with SchedMD for over a decade and plans to continue investing in Slurm's development while accelerating SchedMD's access to new systems, allowing users of Nvidia's accelerated computing platform to optimize workloads across their entire compute infrastructure

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. This suggests the chipmaker may optimize Slurm for upcoming hardware including its Rubin graphics card series and Vera central processing units

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Positioning for Physical AI and Robotics Dominance

Nvidia's recent moves signal its bet that physical AI will be the next frontier for its GPUs. Last week, the company announced Alpamayo-R1, a new open reasoning vision language model focused on autonomous driving research, and added workflows and guides for its Cosmos world models, which operate under a permissive open-source license to help developers create physical AI

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. The company aims to be the go-to supplier for robotics and self-driving vehicle companies seeking AI and software to develop their core technologies

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Source: ET

Source: ET

Its proprietary CUDA software remains a standard among developers and a major selling point for its chips, making software capabilities key to maintaining dominance as foundation model developers and AI builders increasingly rely on tools like Slurm to manage model training and inference needs for generative AI

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. SchedMD also maintains Slinky, another open-source project enabling companies to run Slurm on Kubernetes, which simplifies management and can improve hardware utilization while lowering costs

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