NVIDIA has announced that it is acquiring UK company ARM for $40 billion. AI research and development is the contributing factor behind the move.
“The combination brings together NVIDIA’s leading AI computing platform with ARM’s vast ecosystem to create the premier computing company for the age of artificial intelligence, accelerating innovation while expanding into large, high-growth markets,” said NVIDIA in a press release.
ARM, as described by Business Insider, designs the architecture for chips in devices like smartphones and hard drives and is an intellectual property provider. According to the website it also describes itself as the semiconductor industry’s R&D department. It was previously owned by SoftBank Group Corp, which will retain an under 10% ownership stake following NVIDIA’s acquirement.
Following NVIDIA’s move, ARM will still continue with its open-licensing model and also retain its name. However, NVIDIA will add a new “global center of excellence in AI research” to ARM’s Cambridge campus. It will have a state-of-art AI supercomputer powered by ARM’s tech, training facilities, and a startup incubator for fields like healthcare and robotics.
“AI is the most powerful technology force of our time and has launched a new wave of computing,” said NVIDIA CEO Jensen Huang in a prepared statement. “In the years ahead, trillions of computers running AI will create a new internet-of-things that is thousands of times larger than today’s internet-of-people. Our combination will create a company fabulously positioned for the age of AI.”