Nvidia plans to make a server processor chip based on technology from ARM, putting it in the most direct competition yet with rival Intel.
ARM, the British technology firm whose chip technology powers most of the world’s smartphones, on Tuesday released a new generation of technology aimed at taking over data centres and artificial intelligence applications.
Microsoft is working on in-house processors for the servers running its cloud computing services and Surface line of PCs, potentially cutting its reliance on Intel, a person familiar with the matter said.
Chinese technology companies including Huawei have expressed strong concerns to local regulators about Nvidia’s proposed acquisition of ARM, potentially jeopardising the $40-billion semiconductor deal.
Nvidia’s record deal to buy ARM will encounter major hurdles from regulators in countries sparring over trade and customers concerned the transaction will limit competition and unfairly favour ARM’s future owner.
If Nvidia is able to pull off its blockbuster acquisition of premier chip designer ARM, the deal may be the final piece it needs to dominate the industry for a generation.
Nvidia’s $40-billion agreement to acquire ARM is likely to meet strong opposition from Nvidia’s chip industry rivals, analysts say, with murmurs of protest already emerging in South Korea and China.