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The Nvidia’s Grand Unification in Microprocessors

The Nvidia’s Grand Unification in Microprocessors

Nvidia is taking over the AI chip world by connecting with VMware software after bringing ARM inhouse. Intel has a real challenge ahead. What Nvidia is doing is to unify AI chips with cloud computing, via VMware, and then drive the mobile world with ARM. 

Nvidia and VMware have partnered on a major artificial intelligence deal in which VMware will make its data center software compatible with Nvidia’s computer chips tailored for deep learning. VMware announced the partnership on Tuesday amid its annual VMworld conference, held online this year owing to the coronavirus pandemic. As part of the partnership, VMware CEO Pat Gelsinger told Fortune that Nvidia will ensure that the developer software that accompanies its A.I. chips will work with VMware Tanzu technology, which incorporates the trendy container technology that coders use to build apps that work with multiple cloud computing services and in-house data centers.

The implication of this is massive. If datacenters can easily use Nvidia chips because VMware has made it easier for them to use, other server chip makers may be in trouble. This Nvidia-VMware partnership is a major closing of the flanks as it ensures Nvidia secures its castle of high-end AI chip business for gaming and modern computing, by creating a moat via VMware. Nvidia is arguably the world’s best AI chip maker while VMware provides cloud computing and virtualization software and services at scale.  Bring them together, a new dimensions of competitiveness is introduced in the microprocessor world.

Nvidia chip

Recently, Nvidia struck a deal to acquire ARM, a global leader in making chips for mobile devices. I see Nvidia, well ahead of Intel across many metrics to be unifying the modern chip business. The age of Intel has gone, now, we are in the Nvidia era.

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SoftBank Group Corp is getting close to a deal which will see it sell Arm Holdings to Nvidia Corp. for over $40 billion. The Japanese conglomerate has been in talks with Nvidia for weeks now as it seeks to sell off some of its subsidiaries to offset its financial troubles.

The Wall Street Journal reported that the cash-and-stock deal is expected to close on more than $40 billion. The deal will mean a big win for SoftBank who bought ARM for $32 billion four years ago, and has been struggling with the British company.

SoftBank and Nvidia started talking in July, as Nvidia is seeking to consolidate its play in the semiconductor industry. ARM is an English tech company with a great reputation in chip making. It makes chips for modern devices including smartphones, an area where Nvidia is yet to find foothold.


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