- According to several media channels, American chipmaker Nvidia on Saturday, the current owner is close to buying British competitor Arm from Softbank for $ 40 billion.
- A deal can be confirmed next week.
- The deal could provoke regulatory scrutiny, as it would create a giant in the chip industry.
- SoftBank first acquired Arm in 2016 in its biggest deal worth $ 32 billion.
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Japanese conglomerate Softbank is close to selling its British chip designer arm to chipmaker Nvidia for $ 40 billion dollars, as reported by the Wall Street Journal and Reuters.
The deal would create a chip powerhouse to rival Intel, and could happen next week.
The UK-headquartered arm is not a chipmaker, but licenses its chip design to various customers including Apple, Samsung and Intel. Its chip architecture is widely used in mobile and, according to VentureBeat, its licensees have manufactured billions of chips for everything, including phones, tablets, and Internet-of-Sens sensors.
Meanwhile, 89 billion Nvidia is known for its graphics chips, but it has expanded into areas including artificial intelligence.
As reported by Business Insider’s Benjamin Pimentel in July, a tie-up between Nvidia and Arm could spark regulatory scrutiny, as the UK firm’s licensees include some of Nvidia’s direct rivals.
“If Nvidia were to buy, they would gain significant power in the market,” said IDC President Crawford del Preet. “Nvidia gains the ability to control the source code of the arm, arguably the most popular CPU [computer processing unit] Architecture on the planet in terms of volume. ”
Softbank initially bought Arm for $ 32 billion in 2016, its biggest deal, but is negotiating to reduce the pressure on its swinging stock price in the mega-sale and some of its losses.
Nvidia declined to comment. Arm did not immediately respond to a request for comment.
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