What They Say
Nvidia has confirmed that it has agreed to buy ARM from Softbank. The company will also invest in a new AI facility in Cambridge. It is, of course, subject to regulatory approvals.
What We Think
Nvidia has grown to be one of the biggest chip maker by market capitalisation – after this announcement, its value was bigger than Intel. However, Nvidia’s core technologies have been in big chips and it has made little or no progress on penetrating the mobile markets. Arm’s designs or variations of them on the other hand, dominate the mobile space. This is a good move for Nvidia and although there is some nervousness in the UK about a US investor taking ownership of the UK’s high tech jewel, but given that Softbank of Japan bought the firm four years ago, there is little that the UK government can do. A DD friend, Bob O Donnel subsequently contributed a detailed article on the move. Nvidia Purchase of Arm Completely Resets Semiconductor Landscape (BR)
