Nvidia is near to a deal to shop for British chip designer Arm Holdings from SoftBank Group for more than $40 billion (kind of Rs. 2,93,817 crores) in a deal which would create a giant in the chip industry, according to two people familiar with the matter.
A cash and inventory deal for Arm could be announced as early as next week, the sources said.
Nvidia is known for its graphics chips that power video games, but it has developed other markets including man made intelligence, self-driving cars and data centres.
Arm supplies the chip technology for practically all mobile devices such as phones and tablets but could also be expanding into processors for cars, data centre products and services and other devices.
The British company does not make chips. Instead it licenses out the underlying technology so others can make chips with it. It has prior to now collaborated with Nvidia.
Final year Nvidia said it would make its chips work with processors from Arm to build supercomputers, deepening its push into systems that are used for modelling both climate change predictions and nuclear weapons.
SoftBank acquired Arm for $32 billion in 2016, its largest-ever purchase, in part to expand into the internet-of-things technology, which connects on a regular basis devices from traffic signals to refrigerators to the internet.
The terms would mark a big win for the Japanese company which has struggled to jump-start growth in the trade, according to the Wall Road Publication, which reported on the deal earlier.
Nvidia declined to remark. SoftBank and Arm did not respond to Reuters’ requests for comments.
© Thomson Reuters 2020
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