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Nvidia advances in the negotiations for the purchase of the chip company ARM

Negotiations between Nvidia and Japanese group SoftBank for the acquisition of the chip company ARM are advancing. The two parties intend to reach an agreement in the coming weeks, according to the Bloomberg. Nvidia would be the only suitor in concrete discussions with SoftBank.


ARM was bought by SoftBank in 2016 for $ 32 billion, but in recent months the Japanese group has been looking for interested in taking over the processor developer, which is based in Cambridge, England. The conglomerate is studying both to dispose of part and all of its participation in the ARM business.

If the deal goes through, Nvidia – which is an ARM customer – would become a threat to companies like Intel, Qualcomm and AMD, all manufacturers of microprocessors used in computers and cell phones around the world. The company is known for its graphics cards, but has also been investing in new areas such as artificial intelligence and autonomous cars.

ARM does not produce chips, it only designs and creates instructions that are licensed to other companies to manufacture their own processors. Apple, for example, one of these partners. And, with the recent announcement that Macs are going to start running processors from the English company, the trend is that the business will be quite profitable for those who acquire ARM.

No final decision has been made yet and negotiations may take longer or end for good, according to Bloomberg. SoftBank is still open to other suitors if it does not reach an agreement with Nvidia.

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“With Nvidia’s low-cost model, allowing it to focus on R&D, engineering and programming, the purchase of ARM would be perfect,” says Neil Campling, an analyst at Mirabaud Securities. The market estimates that Nvidia would have to pay about $ 55 billion for ARM, which has been gaining value as it implements its architecture in smart cars, data centers and network equipment.

Via: Bloomberg

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