Nvidia Buys Arm For $40 Billion To Make Processors of The Future!

Can you imagine your mobile phone processors made up of Nvidia? Well, that is just about to happen because Nvidia has acquired Arm from Softbank for $40 billion.

According to the deal, Arm will now operate as a part of Nvidia, however, its headquarter will remain in the UK and the company will also continue to operate on the open licensing model only to keep up with the global customer neutrality factor.

With all the bright news, there is also a dark side of the story as well since the deal will have to bear the intense regulatory restrictions.

Prior to this acquisition, Arm was first bought by Softbank for $31 billion in 2016 and ever since then the British company has helped power so many of Apple and Samsung devices with its amazing processors. While Arm only benefited from the Softbank’s acquisition as there was a massive increase in its valuation, now the situation seems to be even better as Microsoft is already working on its own Arm-based Surface and an exclusive version of Windows for Arm, whereas, Apple is soon going to introduce a Macbook made up of Arm-based chip.

With that being said, Nvidia is also regarded as the leader in making GPUs - which are already designed by Nvidia. But the company hasn’t made any major contribution in the world of mobile chipsets or CPU design (except for Nintendo) and now with the current acquisition in place, Nvidia CEO Jensen Huang has stated that they will now “bring Nvidia technology through Arm’s vast network.”

That also doesn’t mean that Nvidia will shift from its current model of licensing. The company has invested heavy money only to make things better for the current clients and not make them run away.

It is expected that Nvidia will keep Arm as its neutral provider of technology as a short term goal and along with keeping the headquarter in Cambridge UK, the company will also make a new AI research center for the purpose of setting up the stage for the next generation’s AI computing. And if things go right, you can soon expect Nvidia and Arm both to enable AI softwares that currently work well on Arm chips inside mobile phones to huge servers in the times ahead as well.

For those of you who don’t know, Nvidia once aimed to build CPUs for mobile phones but while at that time their efforts vent into vain, this acquisition puts them in the right position to make their long time dream come true. But for now, the focus seems to be set at maintaining data centers.

In short, Huang has also told that the company is working on achieving maximum energy efficiency which will first directly translate into computing capacity, then computing throughput, and eventually improve the cost of provisioning service as well - which is the end goal with Arm now contributing to this as well.

Fortunately, Nvidia and Arm have not been direct competitors in the past or else managing the acquisition could have been another problem considering regulatory scrutiny these days.

Justin Sullivan / Getty Images

Read next: What Brands Need To Know and Do About Capitalizing Onto The Current 5G Market

Sources: Bloomberg / Forbes.
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