NVIDIA to acquire ARM for $40 Billion

Last updated on Sep 15, 2020

Posted on Sep 15, 2020

There have been rumors that NVIDIA has been eyeing up UK-based ARM for a possible acquisition from Japan-based Softbank.

Well, those rumors have now been officially confirmed true with the announcement that NVIDIA will be acquiring ARM for nearly $40 billion. For those that do not know, ARM is a chip designer that licenses out the ability for companies to manufacture chips based on their designs. ARM has clients such as Apple, Samsung, Huawei, and NVIDIA as well. Many of ARM's processors power most of the mobile devices that we use today, including some laptops and desktops.

NVIDIA, a powerhouse in PC graphics and AI, will focus on this acquisition to expand its AI research and tap into the network of clients that ARM has to offer NVIDIA IPs to them. This includes plans to expand onto ARM's Cambridge headquarters with a new AI-focused R&D Center.

"In the years ahead, trillions of computers running AI will create a new internet-of-things that is thousands of times larger than today's internet-of-people. Our combination will create a company fabulously positioned for the age of AI." - Jensen Huang, NVIDIA CEO

The deal is still subject to approval, but some have shown concerns over this deal, stating that with the UK-based company's acquisition by a US-based company, ARM could become a pawn in the US trade war with China. In response to this, Jensen Huang has stated that ARM will continue to stay neutral and remain headquartered in Cambridge.

With this acquisition, it makes me wonder if we may start seeing NVIDIA graphics available in mobile devices in the future, or if NVIDIA will start tackling the CPU processor market to disrupt Intel and AMD. I also wonder how this could affect Cloud Gaming, especially the GeForce Now platform. Will NVIDIA be able to optimize their GPUs better or create CPUs focused on Cloud Gaming?

The deal is not expected to be closed until 2022.

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