Nvidia, the leading company in the GPU industry, will buy the entire processor designer ARM for a total of $ 40 billion. The operation, which had been on the air for several weeks, was announced this Monday through a Press release. Until now, British designer ARM had been part of the Japanese conglomerate SoftBank, who acquired the company in 2016 for $ 31 billion.
In a letter sent to his employees, the founder of Nvidia has indicated that the objective of this union is “create the leading computer company in the age of artificial intelligence”. According to him, “AI is the most powerful technological force of our time.”
Nvidia ensures that, despite the acquisition, the company will preserve the “open license model” and will act neutrally when it comes to customer relationships. Nvidia has also confirmed that ARM’s headquarters will remain in the UK, where it was originally conceived. The idea is to build “a world-class artificial intelligence research center in Cambridge.”
Once the purchase is made, ARM will fall under the umbrella of the United States, where Nvidia is headquartered. This could complicate approval by Chinese regulators, who, like their counterparts in other regions, must give the deal the go-ahead before completion.
It should be remembered that the United States and China are immersed in a commercial battle that has technology companies – such as WeChat, Huawei or TikTok – at the epicenter of it.
Why does Nvidia buy ARM?
Nowadays, ARM is one of the most influential companies in the sector. All processors for smartphones They are based on the intellectual property developed by the company of British origin, which licenses its technology Qualcomm, Apple and Samsung, among others.
Mobile telephony, however, is only a percentage of the story. ARM’s technology is also being implemented in smart watches, home devices, and even personal computers. In fact, Apple is expected to present its first computer with a processor Apple Silicon (based on ARM technology) in the coming months.