After the ARM acquisition fiasco, now at NVIDIA, they focused on a bigger fish. According to the latest information, NVIDIA wants to buy AMD for an amount of $200,000 million. This will allow them to enter the processor market in style and also get rid of a direct rival.
Jensen Huang, CEO of NVIDIA, is determined to enter the processor market. He wants to enter a huge market anyway and it seems he has found a viable door. Acquiring ARM was economically easier, but it had many other implications.
NVIDIA prepares the biggest operation in history
Intel’s foray into the graphics card market is a major issue for NVIDIA. Although they are not yet rivals, the company is worried that it will have to fight on another front. They believe that Intel’s entry into this market will not affect AMD excessively and will affect them mostly.
Before negative roundabout of the acquisition of ARM On the side of the regulators, they are thinking about a new, more stupid movement. Nvidia’s idea is to acquire AMD in its entirety and thus enter the processor market by slamming the door. Interestingly, this decision would be accepted without too many problems by international regulators.
As leaked, rumor has it that the the operation would be around 200,000 million dollars. Recall that the acquisition of ARM was valued at 40,000 million dollars, so this operation is five times dumber. But despite being five times larger, it looks more viable for approval from international antitrust regulators.
Interestingly, this operation would be well regarded by the UK, Europe and, above all, the US. Great the opposition could be in China, which is currently in a brutal trade war with the United States. This could be solved by making some concessions to the Chinese, stifled in the technology sector with the ban on importing chip-making machinery.
NVIDIA would already have all the details of thean operation valued at 200,000 million dollars. They would also have almost all the documentation prepared and ready to send to international regulators. The goal is to ratify compliance in 2024 and in 2025, the unification of the two companies under the same name.
Sailing the waters of ARM again
The ARM acquisition operation was really complicated. We have to keep in mind that ARM doesn’t manufacture anything, it only designs cores, graphics and processors and then licenses those designs. Qualcomm, Apple and Samsung are the company’s three main customers and they weren’t happy with the deal.
These three companies, like many others in the technology sector, have expressed concern. Given the growing discontent and the risks of losing licenses or making them more expensive, it was mainly UK regulators who opposed it. Europe and the United States were not in favor of it either, and China seemed clearly positioned to prevent the operation.
In fact, this operation is very different. The only major company that may be at risk is Intel, which rules the market for desktop processors, servers, and the like. This operation would reduce the market to two rivals with fairly similar capabilities. Intel’s only big advantage is that it manufactures its own products, while NVIDIA relies on third parties like TSMC.
