Nvidia's Dependence on ARM: A Deepening Relationship

The world of semiconductors is a complex and highly interconnected web. At the heart of many cutting-edge technologies lies a crucial relationship between two giants: Nvidia, a leading manufacturer of graphics processing units (GPUs) and high-performance computing chips, and ARM Holdings, a British-based designer of advanced processor cores.

A Long-Standing Partnership

For years, Nvidia has relied on ARM to supply CPU cores for its superchips. These powerful processors are the backbone of Nvidia's datacenter and AI computing offerings, providing the performance and efficiency needed to support applications such as artificial intelligence, deep learning, and high-performance computing.

The partnership between Nvidia and ARM dates back to 2008, when Nvidia first began using ARM's Cortex-A9 processor core in its Tegra processor lineup. Since then, the two companies have continued to work together, with ARM providing the CPU cores that power many of Nvidia's most powerful systems.

A Proposed Acquisition: A New Chapter?

In 2016, Nvidia announced a proposed acquisition of ARM Holdings for $40 billion. The deal would have given Nvidia control over not only its own CPU cores but also those of its partners, including Apple and Qualcomm. However, the proposed acquisition was met with significant regulatory scrutiny from the Federal Trade Commission (FTC), which ultimately blocked the deal in 2018.

The FTC's concerns centered on the potential anticompetitive effects of a single entity controlling both the design of CPU cores and the hardware that uses them. While Nvidia argued that the acquisition would enhance its ability to innovate and improve performance, the regulatory body remained skeptical, citing concerns about reduced competition and innovation in the industry.

Why ARM Remains Crucial for Nvidia

Despite the failed acquisition attempt, ARM remains a vital component of Nvidia's CPU core design. The company continues to rely on ARM's processor cores in its high-performance computing offerings, including its datacenter and AI computing systems.

There are several reasons why ARM remains essential to Nvidia:

• Performance: ARM's processor cores have consistently delivered exceptional performance per watt, making them an ideal choice for Nvidia's power-hungry applications.
• Power Efficiency: The high-performance capabilities of ARM's CPU cores also enable Nvidia to achieve significant power reductions, which is critical for low-power and mobile systems.
• Innovation: By partnering with ARM, Nvidia can tap into the latest advancements in processor core design, ensuring its own products remain at the forefront of innovation.

ARM's Impact on Nvidia's Success

The partnership between Nvidia and ARM has undoubtedly contributed to both companies' success. The use of ARM's CPU cores has enabled Nvidia to develop high-performance computing systems that have helped drive growth in areas such as:

• Artificial Intelligence: Nvidia's AI computing offerings, including its Tesla V100 and A100 GPUs, rely heavily on ARM's processor cores.
• Datacenter Computing: Nvidia's datacenter offerings, including its Quadro and Tesla V100 GPUs, use ARM's CPU cores to provide high-performance computing capabilities.
• Autonomous Vehicles: The growth of autonomous vehicles has created a new market for high-performance computing systems, with both Nvidia and ARM poised to benefit from this trend.

Conclusion

The partnership between Nvidia and ARM is a powerful example of the complex relationships that exist within the semiconductor industry. While Nvidia's attempt to acquire ARM was met with regulatory scrutiny, the two companies continue to work together, with ARM providing CPU cores that power many of Nvidia's most powerful systems.

As both companies navigate the rapidly evolving landscape of semiconductors, it is clear that their partnership will remain a crucial component of each other's success.