Nvidia is reportedly finalizing the acquisition of chip designer ARM from SoftBank, in a deal said to be worth more than $40 billion.
The deal, reported by the Wall Street Journal and Reuters, citing sources familiar with the matter, will create a giant in the chip industry.
Nvidia has previously collaborated with ARM, which licenses out technology to chip makers. ARM’s technology is found in mobile devices such as smartphones and tablets, but has also expanded its reach to vehicles, data centers, and others.
ARM will be valued at the low end at $40 billion in the cash-and-stock deal under discussion, according to sources. If the purchase pushes through, it will be a win for SoftBank, which acquired ARM for $32 billion in 2016 but has “struggled to jump-start growth in the business,” according to the Wall Street Journal.
Nvidia and ARM have reportedly been in exclusive talks for several weeks. The deal may be finalized as soon as early next week, if there are no last-minute issues.
The acquisition of ARM, if it pushes through, will be a game-changer for Nvidia, as it may give the company far bigger reach than rivals Intel and AMD.
Digital Trends reached out to Nvidia regarding the reported deal to acquire ARM, but the company declined to comment.
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