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NIVIDIA TO ACQUIRE ARM IN A $40 BILLION DEAL

Nvidia CEO Jensen Huang confirmed on Sunday confirmed that the company is indeed acquiring British based chip designer ARM. According to reports, the deal is worth $40 billion, making it the largest in the semiconductor industry.

ARM will operate as a division of Nvidia with its headquarters still in the UK, and will continue to operate its open-licensing model, while maintaining its global customer neutrality. But the deal is still likely to face intense regulatory scrutiny.

Nvidia is the leading maker of GPUs, which ARM also designs, but other than its Tegra line of mobile chipsets used in devices like the Nintendo Switch, Nvidia doesn’t do much in the way of CPU design or mobile hardware.

Speaking to Forbes, Nvidia CEO Jensen Huang said that his first priority after the acquisition would be to “bring Nvidia technology through Arm’s vast network.” However, that doesn’t necessarily mean that Arm will change its current licensing model. Bloomberg 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.”

Nvidia once had big ambitions to make CPUs for phones but had little success. This acquisition could obviously change that, but it appears that at least initially the focus will be on data centers. “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,” Huang tells Forbes. “Energy efficiency directly translates to computing capacity, computing throughput, and the cost of provisioning service.”

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