For months the rumor arose that indicated that SoftBank, The Japanese company that owns ARM was looking for a buyer for its chip company, and although there were several interested parties on the table, it seems that Nvidia has been the one that has led the negotiations to the best port, and would be willing to pay more than 40 billion dollars to get ARM.
This is reported by the Wall Street Journal, which also indicates that the agreement could become official in the next few days, however, the approval of the regulators would still be pending.
Nvidia, lord and master of the chips in most devices
ARM is one of the most important companies when it comes to the manufacture and design of chips because the company from the United Kingdom is the one that has designed the architecture of most of the processors that today carry phones, computers and other devices, and several of its main customers are Intel, AMD, Qualcomm, Apple, Samsung and Huawei, in fact, when ARM was banned from continuing to provide its technology to Huawei, the Chinese company had to stop the production of its Kirin processors.
SoftBank bought ARM in 2016 for $ 31 billion, and since then it has increased in value, although it is not clear why the Japanese company seeks to sell this company again, although those details will probably be known in the coming days if part of the agreement between the two companies is revealed.
To give us an idea of the importance of ARM, their designs have helped Apple make the leap and leave Intel to create its own ARM-based processor, Microsoft has done the same with the Surface Pro X, while the chips of Samsung known as Exynos exist thanks to the architecture of ARM.
What would Nvidia gain from this purchase?
Without a doubt, Nvidia is the leading firm when it comes to dedicated GPUs, in fact, the architecture of this GPU is in charge of ARM, but beyond some Tegra chips used in some products the firm does not do more in CPU and in design, so if ARM was bought, it would become the leading GPU and CPU firm, the latter not because it has the best processor on the market, but because its architecture would be used in most chips on the market.
In fact, this purchase could lead Nvidia to also create its own line of processors, serving its customers with a powerful GPU and CPU.
However, the firm may run into the problem of the approval of regulators in the US, since giving so much power to a company that it can compete with Samsung, Intel or Apple can hurt the market for processors.