Just over a week after word emerged that Nvidia Corp.is looking to buy Arm Ltd., a pair of new reports today have provided an update on the negotiations, saying a deal could be struck soon with a price tag potentially exceeding $32 billion.
It is worth to note, however, that any deal between Nvidia and Arm is likely to come with regulatory scrutiny as well as generate some resentment from other users.
Apple announced in June that it would overhaul its Mac computers with Arm chips, which are similar to the ones it designs for iPhones and iPads, moving away from the Intel processors it's used for the past 14 years.
The deal is of interest to Apple watchers as the company is a licensee of the United Kingdom firm.
SoftBank acquired the British chip designer for $32 billion in 2016, its largest-ever purchase, in part to expand into the internet of things, which connects everyday devices from traffic signals to refrigerators to the internet.
The three reasons Nvidia said it was making a big investment in Arm for high-performance computing: more choice, an open platform and improved energy efficiency for customers.
"With Nvidia's low-priced fabless model enabling it to focus on R&D, engineering and programming, the fit with Arm would be flawless", Mirabaud Securities Ltd analyst Neil Campling said.
ARM is now owned by Japanese firm, SoftBank Group.
Billionaire Masayoshi Son has been selling some of SoftBank's trophy assets as seeks to pay down debt at the Japanese conglomerate.
Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The stock has more than doubled over the past year. The stock slid 1.4 per cent Friday morning in NY after news of the deal talks.