Nvidia acquires ARM: The world's leading chip manufacturing company
ARM is the world’s leading CPU manufacturing company. From supercomputers that are powering the most phenomenal architectures - to smartwatches and even smart thermostats, ARM backs them all. ARM built over 180+ billion chips in its lifetime and 22 billion in just 2019. CPUs and sensors are top of the line when it comes to ARM. Nvidia, another giant in the industry for manufacturing graphics cards, AI technology is eager to acquire the company.
AI and ARM
Nvidia is a leading source for expanding and implementing AI on various platforms. Nvidia hoped to attach the leading AI and CPU manufacture for greater economical response and share it with other platforms for broader innovation. From reactions we’ve seen on various news portals, other whales of the tech industry are not taking this positively. ARM is one of the biggest companies based in the UK. It is also the largest semiconductor company in the world powering more than 95% of the smart devices we use every day.
The biggest names in the global tech industry are filing complaints against Nvidia to the U.S. antitrust regulators for this proposal. Competition in this sector is important because these large companies participate in the race to deliver the best product to consumer's hands. Nvidia leading ARM could potentially destroy this healthy completion according to them.
In a phone interview with CNBC, NVidia CEO Jensen Huang told us that the new CPU acquisition will help integrating AI with ARM’s strength to many things like self-driving cars and so on. The open licensing model of chip design by ARM will remain intact under a new contract. He was also hopeful for Moore’s law to end. It is the observation of doubling transistor-numbers in smaller boards every two years.
Apple has a perpetual license with ARM and uses their silicon for the chips. So, we assume it’s not a big deal who owns ARM. Google, Microsoft, Huawei are also against the movement of Nvidia. It’s a pretty sweet deal for Softbank to sell the license to Nvidia. The process may take another 6-18 months if everything goes correctly.
Words on the news are that, with leading AI and computing power from NVidia and the best CPU technology from ARM could break the barrier of current generation computing. It would be the next big step towards technology where new opportunities will arise.
In another brief by CNBC, ARM Co-Founder Hermann Hauser quoted, ARM is the Switzerland of the semiconductor industry. ARM is licensed to over 500 major tech companies around the world. Being one of them, Nvidia wants to acquire ARM.
Softbank acquired ARM in 2016 and had been doing a tremendous job of keeping the license and business model alive like it was supposed to. Microsoft, Amazon uses ARM CPUs to power their server computers. Under different company shade, the ARM may have a lot of change at the enterprise level. That worries not only them but a lot of other companies. Even Qualcomm is protesting against this move with them, according to Bloomberg. These objections are only growing and the Federal Trade Commission (FTC) started their investigation.
The supply of ARM CPU will not be throttled by this new contract if acquired correctly. Now it’s just a matter of time until the investigation comes to an end on whether Nvidia can acquire it rather than keeping it under Softbank. Nvidia is waiting patiently for US, Europe, and China regulators to agree with the contract.