Nvidia is in talks to buy Arm

US chip company Nvidia is in talks to buy the UK chip designer Arm from SoftBank in a cash-and-stock deal that would value the unit at more than $32 billion… The talks began in recent months after Nvidia approached SoftBank, which has been pursuing a series of other asset sales, about a potential acquisition of the UK’s most valuable tech company… Using stock would allow Nvidia to take advantage of the 151 per cent rally in its share price during the past year. Nvidia’s market value has risen to $261 billion in that time, overtaking its much older rival Intel. Buying Arm would further consolidate Nvidia’s position at the centre of the semiconductor industry, at just the moment when the British chip designer’s technology is finding broader applications beyond mobile devices, in data centres and personal computers including Apple’s Macs. Arm would transform Nvidia’s product line-up, which until now has largely focused on the high end of the chips market. Its powerful graphics processors — which are designed to handle focused, data-intensive tasks — are typically sold to PC gamers, scientific researchers and developers of artificial intelligence and self-driving cars, as well as cryptocurrency miners. The deal could alarm Arm’s other big licensees, including Apple, Broadcom and Qualcomm, which may fear a unique asset being taken over by a potential competitor such as Nvidia. 

Arash Massoudi, Tim Bradshaw and James Fontanella-Khan