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NVIDIA is buying Arm for $40 billion to dominate AI computing

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America’s NVIDIA, one of the biggest GPU makers in the world, is acquiring British chipmaker Arm from Japan’s SoftBank.

SoftBank bought Arm for USD31 billion (around Php1.5 trillion) back in 2016. Now, NVIDIA is buying Arm for USD40 billion (around Php1.9 trillion), after the advanced talks that were reported last August 2020.

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As per Jensen Huang, NVIDIA CEO, the priority of the acquisition is to bring NVIDIA technology trough Arm’s vast network. They also assured that Arm’s current licensing model will remain the same and they will not do anything that may cause Arms clients to walk away.

As you know, Arm’s intellectual property is being used by big tech brands like Apple, Samsung, Qualcomm — and more recently, Microsoft with its ARM-based Surface machines and the upcoming Macs with Apple-made processors.

Although, Arm being a neutral provider of technologies to other companies might only be a short term plan for the acquirer. NVIDIA stresses that the chipmaker will continue its operations in Cambridge, UK. But, NVIDIA plans to invest and build a new AI research center inside Arm’s headquarters.

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NVIDIA is preparing the buy-out to improve its AI capabilities — an era where the technology market is heading towards. Both companies are seeing business opportunities in Arm chip-powered chipset with AI software that can be used from smartphones to large servers.

Arm’s acquisition might finally help NVIDIA to be successful in its push to enter the mobile chipset market. But still, the main priority might be its server business, as data centers and cloud services have been begging for ARM CPUs, as it translates to better efficiency that leads to increased computing capacity, throughput, and cheaper provisioning service costs.

As usual, the NVIDIA-ARM acquisition will still have to face regulatory trials and whatnot before it pushes through. But considering they don’t completely compete with each other, the trials might be easier than other mergers.

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