US chip giant Nvidia to buy UK chip designer Arm for $40 billion
US gaming and computer graphics giant Nvidia Corp. said it will buy Cambridge, UK based chip designer Arm Ltd. from SoftBank Group Corp. for as much as $40 billion, in a bid to position itself as a “premier computing company” for the age of artificial intelligence.
Nvidia made the announcement of the deal early Monday
morning, Israel time.
The deal has to potential to “reshape the global
semiconductor landscape” and is expected to see “pushback” from regulators and
competitors, as it puts the supply of vital chips for product manufacturers
under the control of a single player, Reuters said. Nvidia is the biggest US
chip firm by market capitalization.
“The combination brings together Nvidia’s leading AI
computing platform with Arm’s vast ecosystem to create the premier computing
company for the age of artificial intelligence, accelerating innovation while
expanding into large, high-growth markets,” Nvidia, Arm and SoftBank said in a
statement.
“AI is the most powerful technology force of our time and
has launched a new wave of computing,” said Jensen Huang, founder and CEO of
Nvidia in the statement. “In the years ahead, trillions of computers running AI
will create a new internet-of-things that is thousands of times larger than
today’s internet-of-people. Our combination will create a company fabulously
positioned for the age of AI.”
“Uniting NVIDIA’s AI computing capabilities with the vast
ecosystem of Arm’s CPU, we can advance computing from the cloud, smartphones,
PCs, self-driving cars and robotics, to edge IoT, and expand AI computing to
every corner of the globe,” Huang said. A CPU is a central processing unit, the
electronic circuits that execute the instructions dictated by a computer
program.
In April, Nvidia completed the acquisition of Israel’s
Mellanox Technologies Ltd. for $7 billion. The acquisition was initially
announced on March 11, 2019.
Arm will remain headquartered in Cambridge, and Nvidia plans
to expand the firm “and build a world-class AI research facility,” that will
support developments in healthcare, life sciences, robotics, self-driving cars
and other fields, Huang said.
To attract researchers and scientists from the UK and around
the world to conduct their work there, Nvidia will build “a state-of-the-art AI
supercomputer, powered by Arm CPUs,” he said.
Arm has developed energy-efficient processor designs that
have enabled 180 billion chips to perform intelligent computing calculations.
Its technologies now power a range of products, including sensors, smartphones
and supercomputers.
Nvidia’s Huang said the deal marks “the first time in
history the industry could see something that is genuinely alternative” to
Intel Corp’s domination of the sector, Reuters reported.
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