In the last hours the rumors about a possible purchase of ARM by Nvidia had increased significantly, so tonight the company that develops one of the most famous GPUs in the industry has made it official that it is acquiring ARM for 40 billion dollars.
As with any purchase of this magnitude, in order for the regulatory bodies in all the countries where both companies operate to take place now, they will have to give the go-ahead for the purchase, since their mission is that this type of agreements between companies do not generate monopolies that affect market competitiveness.
Nvidia on almost every device in the world
ARM technology is in almost every device in the world, from cell phones to consoles, as the firm owns the architecture that many other firms use to make their processors, in fact, Nvidia GPUs are also designed by ARM.
Apple, Samsung, Huawei, Qualcomm, Intel or AMD are just some examples of companies that use the ARM architecture for their processors, in fact, it is thanks to ARM that Apple has created its Silicon chips for the next Macs, as well as thanks to ARM that Microsoft released its first Surface with an ARM-based processor and created in conjunction with Qualcomm.
ARM is so important in the world of technology that many people are probably concerned about the purchase that Nvidia has made, however, the company has already stated that they have invested a lot of money to make customers leave, so nothing will change in ARM’s business model, so the company will continue to offer its open license model so that companies that today create their processors based on the ARM architecture can continue to do so.
Jensen Huang, CEO of Nvidia told Forbes, “Our mission is to bring Nvidia technology across the vast ARM network.”
Officially this is the largest purchase in terms of money movement in the world of semiconductors, and it is undoubtedly one of the most important in the industry in recent years due to the importance that ARM has in the market and due to the popularity of Nvidia, which plans to bring its technology to all types of devices including data centers, artificial intelligence and autonomous vehicles.
Another advantage that Nvidia could have is that now it can try to launch its own processors with all the engineering power of ARM, because, although the firm is highly popular in GPU, its Tegra chips have not had the same success in the market .
From SoftBank to Nvidia in just 4 years
In 2016, the Japanese company, SoftBank, bought ARM for 31 billion dollars, and only 4 years later they have sold it again, but for 40 billion dollars.
Another detail that Nvidia has made official to leave investors, employees and regulatory bodies calm, is that ARM’s headquarters will remain in the United Kingdom, which is the country of origin of the company, and even the North American firm will invest in a new center in the UK to increase research and development in artificial intelligence.