Nvidia is reportedly very close to acquiring ARM (Advanced RISC Machines), the company that designs chipsets for smartphones today. According to several sources, Nvidia is in talks to buy U.K. chip designer from parent company Softbank for a cash-and-stock deal valued at more than $32 billion.
While ARM doesn’t manufacture its own chips, the company owns the intellectual property for pretty much every mobile chipset you see today. Companies like Qualcomm, MediaTek, Samsung, and even Apple, use ARM’s licenses to design their own mobile chips. The company has also designed chips for supercomputers.
According to one of ARM’s co-founders, Hermann Hauser, allowing Nvidia to buy ARM would be a disaster. As it would compromise the neutrality and ability ARM has to address the needs of multiple disparate companies and vendors.
He explained that ARM’s business model – in which all the big chip-makers license its technologies – making Nvidia an unsuitable owner. “It’s one of the fundamental assumptions of the ARM business model that it can sell to everybody”.”It will become one of the Nvidia divisions, and all the decisions will be made in America, no longer in Cambridge.” – He also commented. Read the full story here.
While Next-gen Ampere GPUs set for launch this September, Acquiring ARM would be a major coup for Nvidia.