After the ARM acquisition fiasco, now at NVIDIA they have focused on a bigger fish. According to the latest information, NVIDIA wants to acquire AMD for an amount of 200,000 million dollars. 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 get into a huge market anyway and it seems that he has found a viable door. The ARM acquisition was easier economically, but it had many other implications.
NVIDIA prepares the largest operation in history
Intel’s foray into the graphics card market is a major problem for NVIDIA. Although they are not rivals yet, the company is worried about having to fight on another front. They believe that Intel’s entry into this market will not affect AMD excessively and that it will especially affect them.
Before the resounding refusal to acquire ARM On the part of the regulators, they are thinking of a new movement, more beast. NVIDIA’s idea is to acquire AMD in its entirety and thus enter the processor market with a slam. Interestingly, this move would be admitted without much trouble by international regulators.
As has been leaked, it is rumored that the operation would be around 200,000 million dollars. Remember that the acquisition of ARM was valued at 40,000 million dollars, so this operation is five times more beast. But despite being five times larger, it appears more viable for approval by international antitrust regulators.
Interestingly, this operation would be well regarded by the United Kingdom, Europe and, above all, the United States. The great opposition could be in China, who is currently in a brutal trade war with the United States. This could be solved by making some concessions to the Chinese, suffocated in the technology sector with the ban on importing machines for manufacturing chips.
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 both companies in the same name.
Sailing the waters of ARM again
The ARM acquisition operation was really complicated. We must bear in mind that ARM does not manufacture anything, it only designs cores, graphics and processors, and then licenses these designs. Qualcomm, Apple and Samsung are the three main clients of the company and they were not happy about the operation.
These three companies, like many others in the technology sector, expressed their concern. Given the growing discontent and the risks of losing licenses or making them more expensive, mainly the UK regulators have been against it. Europe and the United States have not been favorable either, and China seemed clearly positioned to prevent the operation.
Actually, this operation is very different. The only big company that can be threatened is Intel, which reigns in the market for desktop processors, servers, etc. This operation would reduce the market to two rivals with quite similar capabilities. Intel’s one big advantage is that it makes its own products, while NVIDIA relies on third parties like TSMC.
