Nvidia is supposedly in advanced talks with SoftBank for the acquisition of ARM. The chip company is rumoured to have a price tag of more than 32 billion dollars (27 billion euros).
ARM creates chip designs used by many big names in the tech world, including Qualcomm, Apple, Samsung and Nvidia. Just over a week ago, the latter showed interest in buying the company from the Japanese SoftBank Group.
According to Bloomberg, the talks between SoftBank and Nvidia are at an advanced stage, with a deal expected to come in the next few weeks.
According to sources cited by the Financial Times, SoftBank might not receive much more than the 32 billion dollars the company initially paid for ARM in 2016. But Nvidia might reportedly pay for the company with cash and shares, which could be a lucrative option for SoftBank. Nvidia’s shares have tripled since 2016, which means the deal might prove to be interesting in the long run.
Nvidia vs Intel
While Nvidia has already made a name for itself in the consumer GPU and data center market, ARM has a different customer base with a broader reach. Nvidia would establish itself in a lot of new markets with thi acquisition. ARM technology can be found in iPhones, iPads and almost all Android devices.
In addition, an increasing number of ARM designs are used in data centers, which is a market that Nvidia has previously invested heavily in. With the acquisition of ARM, Nvidia could compete with Intel in the data center market.