NVIDIA has confirmed that it is acquiring chipmaker ARM from SoftBank for $40 billion. After the acquisition, ARM will operate as a division of NVIDIA with its headquarters remaining in the UK.
The company says ARM will “continue to operate its open-licensing model while maintaining its global customer neutrality”. However, nothing is cast in stone yet as there’s still the possibility of intense regulatory scrutiny.
According to reports, NVIDIA will not be changing ARM’s licensing model. Nvidia CEO Jensen Huang told Forbes that his first priority after the acquisition would be to “bring Nvidia technology through ARM’s vast network.” Bloomberg also reports that “Huang said NVIDIA is spending a lot of money for the acquisition and has no incentive to do anything that would cause clients to walk away.”
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NVIDIA wants to invest in building a new AI research center in ARM’s UK headquarters. The company’s plan with the acquisition is most likely to set up for the next stage of AI computing. Both companies see opportunities in enabling AI software that can run on Arm’s chips from those on smartphones to huge servers.
According to Huang, the immediate focus for both companies will be to establish Data centers and computing capacity.
“What will change is the rate of our roadmap. We know for sure that data centers and clouds are clamoring for the Arm microprocessor, the ARM CPU. Energy efficiency directly translates to computing capacity, computing throughput, and the cost of provisioning service,” Huang told Forbes.
SoftBank bought ARM in 2016 for $31 billion, at the time, Nvidia was worth about the same amount too. The recent acquisition is worth of over 300 billion underscore its success.
ARM chips help power mobile device processors for companies like Apple, Samsung, and Qualcomm. The company has also delved into the PC market, partnering Microsoft in making an Arm-based Surface and a version of Windows for Arm. It also has plans in place with Apple to switch future Macs to Arm-based chips.
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