Those involved are said to be aiming to complete the deal, which has the potential to be one of the largest ever in the semiconductor industry, in the next few weeks.
The Cambridge-based company was purchased by Softbank in 2016 for $31 billion, and Softbank is reportedly eager to offload the asset as it battles losses due to poor investments such as WeWork and Uber.
A Financial Times report claims that Nvidia is in talks to acquire chipset designer Arm from SoftBank in a deal valued at over $32 billion.
According to The Verge, Nvidia would make an interesting owner for ARM. It additionally notes that the talks may fall via, with SoftBank retaining Arm, as there are "quite a lot of points pertaining to a deal that might have to be resolved". Whereas Nvidia's hallmark graphics chips are mainly used in personal computers and data centers, Arm chip designs power a far larger variety of devices ranging from industrial sensors to handsets. It is also a complicated acquisition, as not only would regulator approval be required, but many ARM clients, like Qualcomm, Apple and other tech giants, would need some assurances.
The deal is of interest to Apple watchers as the company is a licensee of the United Kingdom firm.
SoftBank Group plans to maintain a stake in United Kingdom chip designer Arm, which has formed the core of its strategic investments in artificial intelligence, even if it sells a partial interest to Nvidia or through an initial public offering, Nikkei has leaned. But the two companies have recently expanded their work together, with Nvidia a year ago unveiling a major move to support a new reference architecture and ecosystem support for GPU-accelerated Arm-based servers.
SoftBank has been exploring options to exit part or all of its stake in Arm through a sale or public stock listing, Bloomberg News has reported. I could imagine Arm being worth more than $40 billion. The stock has surged more than twentyfold in the past five years, giving the company more firepower to do large deals. Now, the amount Nvidia is expected to pay for it is estimated by market analysts at $55 billion.