Nvidia Expresses Interest To Acquire Arm

Nvidia Expresses Interest To Acquire Arm

Nvidia Expresses Interest To Acquire Arm

Technology billionaire Masayoshi Son has been selling off some of the trophy assets that he's collected under his company, SoftBank, and its $100 billion Vision Fund. If the acquisition goes through, then it could be the biggest-ever in the chip industry. It's also under pressure from Paul Singer's activist investment firm Elliott Management Corp., which has called on the company to boost stockholder value through buybacks and governance changes. First of all it emerges that Apple was approached by SoftBank as a potential bidder for Arm Holdings. Recently, Nvidia shares have been on the rise, bringing the company's market capitalisation up to $254 billion. It also has found a new use case in the self-driving vehicle market but it is still nascent. Representatives for SoftBank, Arm and Nvidia declined to comment. Also, earlier this month, NVIDIA had briefly surpassed Intel in terms of market value. Nevertheless, Apple will have a very keen interest in the future of Arm as it has sold more than 2 billion devices featuring custom Arm designs and has pinned its Mac computer's future to the architecture.

And it looks like contrary to previous reports, Apple may not be interested in the acquisition.

Bloomberg do suggest that Apple and SoftBank held discussions with a view to a purchase, but that ARM's licensing model wouldn't fit in with Apple's hardware and software services business that well.

The acquisition of ARM by NVIDIA could be a major threat to the likes of Intel and Qualcomm and most other chipset makers as nearly all of them license ARM's technology for their own chips.

Still, the Cupertino, California-based technology giant has a vested interest in the fate of Arm.

When SoftBank bought Arm, the two unveiled a strategy to rapidly increase the chip technology company's reach by going on a hiring binge and increasing its chip-design efforts.

Any customer trying to acquire Arm would trigger regulatory scrutiny. At the moment, Arm Ltd.is owned by Japan based company, SoftBank, which acquired Arm back in 2016 for a total of $32 billion.

This story has been published from a wire agency feed without modifications to the text.

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