The tech companies around the world including Qualcomm, Microsoft, Alphabet (Google) are reportedly nervous about Nvidia acquiring British chip designer company Arm.
Who is Nvidia ?
Nvidia Corporation is an American multinational technology company which was incorporated in Delaware and based in Santa Clara, California.
The company designs graphics processing units for the gaming and professional markets, as well as system on a chip units for the mobile computing and automotive market.
With the belief that the PC one day would become a consumer device for enjoying games and multimedia, NVIDIA is founded by Jensen Huang, Chris Malachowsky and Curtis Priem. At the time, there were more than two dozen graphics chips companies, a number that would soar to 70 three years later. By 2006, NVIDIA was the only independent still operating.
Most recently, in 2020, Nvidia acquired Mellanox uniting two of the world’s leading companies in HPC. Mellanox is a leader in high-performance interconnect technology.
Arm’s Total Compute strategy is a blueprint for that shift, moving from a product evolution focus to use case driven solutions. It adopts a holistic system approach that ensures compute platforms can seamlessly and securely handle the workloads of tomorrow—even with the proliferation of more devices, use cases and killer apps that require powerful compute resources.
By accelerating compute performance, providing improved developer access and expanding security through greater protections across the ecosystem, we can deliver digital immersion use-cases and experiences on future devices.
Why are the tech giants worried about Nvidia acquiring Arm ?
According to reports by CNBC and Bloomberg, the tech giants have raised their concerns that the deal could harm competition known to regulators around the world.
The companies fear that this acquisition will lead to changes in how Arm licenses out its chipmaking technology, despite Nvidia pledging that it will not force Arm to change the way it interacts with other businesses, The Verge reported on Friday.