Mark Lipacis, analyst at Jefferies, wrote on Monday that the deal could let Nvidia bolster its data center business by creating an "ecosystem" of server chips and software ranging from Arm-based CPUs to its GPUs. Arm, based in Cambridge, England, sells the blueprint that other companies need to make low-power chips to power devices like smartphones, tablets, virtual reality headsets, and smart speakers. Nvidia, led by CEO and co-founder Jensen Huang, was originally best known for designing chips that would enable central processors to offload 3D graphics work to increase power and efficiency. Researchers found that graphics processors — Nvidias speciality — were well adapted to run power-hungry artificial intelligence algorithms more efficiently than older server chips or simple CPUs. "If we could leverage their business model, if we could stand on the network theyve created and take the technology weve invented and put it into that channel and make it available to their thousands of partners, the economics for us would be incredible," Huang said.
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