| CPC H04L 12/4633 (2013.01) [G06F 9/45558 (2013.01); H04L 45/745 (2013.01); H04L 49/354 (2013.01); H04L 69/22 (2013.01); G06F 2009/45595 (2013.01); H04L 2012/4629 (2013.01); H04L 49/9068 (2013.01); H04L 61/103 (2013.01); H04L 2101/622 (2022.05)] | 21 Claims |

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1. A physical network interface controller (PNIC) for a host computer, the PNIC comprising at least one processing unit and a non-transitory machine readable medium storing a program for performing packet decapsulation for an overlay network when executed by the processing unit, the program comprising sets of instructions for:
receiving, from a hypervisor executing on the host computer and through a virtual NIC emulator, a mapping table associating each virtual machine (VM) in a set of two or more VMs executing on the host computer with one tunnel endpoint;
decapsulating an encapsulated packet, to provide a decapsulated packet, received from the overlay network and destined for a particular VM operating on the hypervisor executing on the host computer, by removing an overlay network encapsulation header from the encapsulated packet, the encapsulation header comprising a particular tunnel endpoint address; and
based on a determination that the particular tunnel endpoint address in the overlay network encapsulation header matches a tunnel endpoint address associated in the mapping table with a particular VM address in the decapsulated packet, forwarding the decapsulated packet to the particular VM.
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