In September 2020, Nvidia revealed its intention to buy ARM from SoftBank, but the deal has been stuck in regulatory doubt for some years. Nvidia CEO Jensen Huang, however, stated that even if the acquisition falls through, the company will continue to execute at a high level.
Nvidia, Arm, and Their Hold on the Market
NVidia Corporation is a worldwide technology firm based in Santa Clara, California, that was founded in Delaware.
It creates graphics processing units (GPUs) for gaming and professional applications, as well as systems on a chip (SoCs) for mobile computing and automotive applications. Its principal GPU line, dubbed “GeForce,” competes directly with Advanced Micro Devices’ “Radeon”-branded GPUs (AMD).
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With its mobile game consoles Shield Portable, Shield Tablet, and Shield Android TV, as well as its cloud gaming service GeForce Now, NVidia has increased its position in the gaming sector. Its professional GPUs are utilized in workstations for applications in fields like finance and medicine.
Workstations with its professional GPUs are utilized in sectors including architecture, engineering, and construction, media and entertainment, automotive, scientific research, and manufacturing design.
Arm Ltd. (stylized as arm) is a Cambridge, England-based semiconductor and software design business.
Its main business is the design of ARM processors (CPUs), but it also makes additional chips, software development tools under the DS-5, RealView, and Keil brands, and systems and platforms, as well as infrastructure and software for system-on-a-chip (SoC).
It holds shares in other companies as a “holding” company. It is the market leader in processors for mobile phones (smartphones and non-smartphones), tablet computers, and chips for smart TVs, with over 160 billion chips produced for various devices based on Arm designs (more than from any other company).
One of the most well-known “Silicon Fen” companies is this one.  SoftBank Group, a multinational, has owned it since 2016.
Mobile GPUs from American and Japanese technology companies Imagination Technologies (PowerVR), Qualcomm (Adreno), and, increasingly, Nvidia and Intel, are Arm’s main GPU competitors. Qualcomm and Nvidia have merged their GPUs with Arm-licensed CPUs while competing in the GPU market.
On September 13, 2020, Nvidia announced that it will purchase Arm from SoftBank for $40 billion, pending regulatory approval, in exchange for a 10% stake in Nvidia.
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The Impact of This Deal on the Market
The United States, the United Kingdom (where ARM is based), the European Union, and China are all investigating the deal’s possible impact on the worldwide semiconductor business. ARM is a chip industry-neutral party that licenses its chip designs and software to companies all over the world.
Apple, Google, Intel, Microsoft, Qualcomm, and Samsung are among the companies that leverage ARM’s blueprints to make their proprietary chips. They are concerned that Nvidia will no longer enable ARM to function as a neutral third party, effectively cutting them off from ARM’s critical designs.
According to Bloomberg, antitrust regulators have already received concerns from Google, Microsoft, and Qualcomm over the proposed acquisition. Nvidia, for one, has stated that it will continue to support ARM’s neutrality.
The Perspective and Vision of Nvidia Ceo Jenson Huang
Joining NVidia with ARM, according to Jenson Huang, CEO of NVidia, will provide the British chip manufacturer with access to NVidia’s vast research and development skills and finances. The benefits, according to the CEO, are mutual.
For years, NVidia has used ARM CPUs, notably in its new Orin system on a chip, which boasts a 12-core ARM CPU.
On the other hand, Jenson claims that the ARM could benefit from joining hands with Nvidia as the leading GPU producers would upscale the Research and Development sector of ARM. He claims that the company already has its hold in the mobile phone market but this deal can make the company succeed in all other computing sectors too.
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Is This Deal a Step Towards the Future?
Huang says that NVidia wants to see a wide range of central processing units (CPUs) available because it gives the firm more options for how to employ its graphics processing units (GPUs).
Adding to the mix to make artificial intelligence possible (AI). He says that the company will be progressing very nicely, as it is progressing in the current times. He shows his support towards the CPU as it is the first chip and says that the CPU holds the key to accelerated computing opportunities.