(ARM) will operate as a division of Nvidia and remain headquartered in the United Kingdom.
Softbank bought ARM in 2016 for $ 31 billion, and the British firm’s intellectual property helps operate processors for companies ’mobile devices, which include Apple, Samsung and Qualcomm.
The deal makes Nvidia a bigger presence in mobile computing, especially when it comes to bringing its AI technology to platforms such as smartphones, computers, and self-driving cars.
Meanwhile, ARM will gain more support for its research and development efforts, as well as access to the full NVIDIA product range.
To cement its commitment, Nvidia says it will build an artificial intelligence supercomputer powered by ARM CPUs at the company’s Cambridge headquarters.
Nvidia’s CEO, Jensen Huang, said in a statement: Nvidia is spending a lot of money to acquire ARM, and has no incentive to do anything that would cause customers to withdraw.
“Artificial intelligence is the most powerful technical force of our time, and it has unleashed a new wave of computing, and in the coming years trillions of artificial intelligence computers will form a new network of the Internet of Things that is thousands of times larger than the Internet of people today, and the new merger will put the company in A situation suitable for the era of artificial intelligence ”.
Nvidia confirmed that (ARM) will continue to maintain the open licensing model and neutrality with existing customers.
This opens the door to ARM designs that also apply Nvidia’s technology, especially their GPUs.
This gives Nvidia an edge that AMD does not have in the graphics field, and it could make for some very powerful future chip designs.
The board of directors of Nvidia and (ARM) approved the acquisition for $ 40 billion, and the companies expect the deal to end within 18 months.
It has to pass regulatory approval in the US, UK, European Union and China.
Nvidia had major ambitions for designing mobile CPUs, but it was not very successful.
Obviously, this acquisition may change that, but it looks like the focus at least initially will be in data centers.
The acquisition confirms Nvidia’s success in the past five years by focusing in areas such as: GPUs, autonomous cars and artificial intelligence.