Chip designer NVIDIA Corporation is enthusiastic about bringing the ball to Intel Corporation’s prestigious courts when it comes to developing central processing units (CPUs). NVIDIA is the world’s largest graphics processing unit (GPU) designer and is widely known for inventing modern GPUs. With advances in semiconductor manufacturing and the growing amount of data generated by businesses and consumers, GPUs are playing a major role in large enterprise use cases such as data centers. Recent market research has shown that NVIDIA is the leading player in the data center. GPU market.
However, the company is eager to acquire British design house Arm Ltd in this regard due to a shortage of products in the CPU segment of the data center. However, while the acquisition attempt isn’t going as NVIDIA expected, the company is actively pushing for it. We will move forward toward the development of data center CPUs. This is evidenced by a new R & D center established by NVIDIA in Israel. The center will expand the facility to include CPU research.
With that arm acquisition setback, has NVIDIA considered alternatives to break into the data center CPU industry?
This little news, reported by Globes and the Times of Israel, outlines how US chip companies have grown their R & D activities in Middle Eastern countries to focus on CPUs as well. They say NVIDIA Chief Technology Officer Michael Kagan said:
In a statement on Tuesday, Nvidia Chief Technology Officer Michael Kagan said: “We look forward to further growth of our R & D activities in both this area and our extensive work to support the local ecosystem through our unique programs for start-ups and developers.”
NVIDIA announced the first CPU, codenamed Grace, in April last year. Grace is only available to data center customers and is designed using the Arm Instruction Set Architecture (ISA).
The announcement of R & D expansion in Israel continues to face hurdles in multiple jurisdictions with billion-dollar bids by America’s largest chip designer in terms of market capitalization to acquire British design house Arm Ltd. Because it is. NVIDIA announced the deal in September 2020. The United States and the United Kingdom are facing scrutiny.
The Federal Trade Commission (FTC), an American watchman, has filed a proceeding against NVIDIA for participating in a transaction that the FTC believes will produce serious anti-competitive consequences. Similarly, the British Competiton and Markets Authority (CMA) is concerned that many will put Arm’s customers competing with NVIDIA at a disadvantage because they can prevent GPU designers from acquiring designs from British companies. Was raised. It’s everywhere in the tech industry.
NVIDIA rejected these claims in its latest submission to the CMA. Instead of creating anti-competitive externalities, the company believes that acquisition bids will allow Arm to compete in the data center CPU market. NVIDIA believes that other companies such as Intel Corporation and Qualcomm Incorporated do not want the deal to proceed as NVIDIA and Arm can work together to create alternatives to Intel’s x86 CPUs for use in data centers. In addition, Arm has told CMA that if the incident does not proceed, Arm has little incentive to develop data center technology. This solidifies Intel’s position in the segment as the world’s largest data center CPU provider.