The semiconductor and software design company ARM is reportedly up for grabs, and Nvidia might be looking to acquire it. If so, this could be a major acquisition deal in the technology industry, possibly one of the biggest, as Nvidia continues to dominate the technology industry with their chips for data centers, AI, self driving cars, as well as their gaming GPUs.
According to recent reports online, Nvidia is in talks with Softbank, the parent company of ARM, to acquire them and make a deal. Softbank apparently approached Apple first, after the Macbook and iPhone creators revealed a 2-year transition from Intel’s chips to ARM.
If this is the case, then Nvidia could effectively dominate the market, as ARM is responsible for powering many devices already out there, which you most likely already have a device run by ARM in your pocket like your smart phone. They already license their intellectual property to big companies like Apple, Intel, Broadcom, Qualcomm, Samsung, Nvidia and even AMD. So an official acquisition by the Green team could mean that they’ll have significant leverage over the aforementioned companies, which wouldn’t spell well for the likes of Intel or AMD.
Whilst this would certainly be good for Nvidia, who keep pushing the gaming industry in terms of graphical technology, this does pose a lot of regulatory issues which many have already begun to criticize.
If Nvidia were to buy ARM, then there’s no doubt they would shift development to favor more of what they’re doing. But the fact that many companies are already dependent on ARM chips would mean that companies like Samsung or Qualcomm, who are some of the biggest phone designers, would be forced to work around Nvidia, and understandably would lead to less innovation in the phone processor market.
It’s a tricky subject in the technology industry, and one that would most certainly shake it up a lot, and Nvidia are clearly not newcomers to buying out large tech companies as they already acquired Melanox during the GTC 2020 keynote. And they certainly have the money for it after they recently overtook Intel in market cap.
Of course, these are still rumors, and rumors may never come true, so keep a grain of salt handy to yourself just in case.
What do you think? Should Nvidia buy ARM? What could this mean for the technology industry? And how would this affect other companies dependent on ARM-based products? Let us know!