US-based Nvidia is close to acquiring SoftBank-owned UK chip company ARM in a cash-and-stock deal valued at more than $40 billion, Wall Street Journal reported on Sunday.
Nvidia recently completed the $6.9 billion acquisition of Israeli chip designer Mellanox Technologies.
Nvidia, known for its gaming graphics chips, aims to bolster its data center and artificial intelligence business by buying Mellanox and to better compete with rival Intel.
SoftBank, the Japanese technology conglomerate, bought ARM for $31 billion in 2016. The company powers major mobile processors from companies like Qualcomm, Apple, Samsung and Huawei.
The terms under discussion would mark a big win for SoftBank, which bought Arm four years ago for $32 billion and had struggled to jump-start growth in the business.
The Financial Times first reported in late July that Nvidia is reportedly in advance talks to acquire ARM in a cash-and-stock deal worth at least $32 billion.
Apple in June confirmed its break up with Intel chips for ARM chips in its Mac desktops, announcing it will transition the Mac to its world-class custom silicon to deliver industry-leading performance and powerful new technologies.
Buying ARM would consolidate graphics giant Nvidia’s position at the centre of the semiconductor industry.
Microsoft makes an ARM-based Surface laptop and a version of Windows designed for ARM.
While Nvidia is the leader for GPUs, it has little to do with CPU design or mobile hardware.
The chipmaker in August said it expects third-quarter revenue of $4.40 billion, plus or minus 2 percent.