We first heard reports that Nvidia was interested in purchasing CPU designer Arm a couple of weeks ago, and according to the latest news, those talks are indeed progressing. The latest report from Bloomberg says that they’ve heard that the two parties are aiming to reach a deal “in the next few weeks”. This would be a historical deal, with two massive firms within the world of computer components combining to form a powerful new force within the industry.
According to Bloomberg, Japanese tech conglomerate Softbank is speaking only to Nvidia as a potential buyer for Arm, which they have owned since 2016, with no other viable candidates involved in any ongoing talks.
A final agreement has not yet been reached, with negotiations still ongoing. There are only a finite number of companies that would be able to handle a major acquisition along these lines, and it would potentially be a huge boost to Nvidia’s long term business goals, but negotiations surrounding these kinds of acquisitions can be very tricky to navigate on all sides, and any of a number of unexpected turns could halt the entire deal.
Bloomberg has speculated that Arm could be valued in the region of $44b, which would probably have Nvidia looking down the back of the sofa for any spare change.
This would be an acquisition that would likely come under some significant regulatory scrutiny, with Nvidia already being such a major player in the world of computer hardware, and with so many of Nvidia’s direct competitors currently licensing chip designs from Arm. The legal logistics of such a deal would mean that there would be a lot of procedures and involvement from legal experts before a deal could finally be signed.
If it does go ahead, this could have huge ramifications for the future of computing, and could ultimately shape the design of the devices we use and the components they are made with for years to come.
We’re looking forward to more news on Nvidia’s 3000 series GPUs that are somewhere on the horizon, but this could potentially be even bigger news for the future of the company.