Nvidia's GPU and AI solutions have seen strong demand from the datacenter market segment, and its acquisition of Arm should help complement the business.
The acquisition of Arm is expected to facilitate Nividia's integration of its GPU and CPU technologies. In the medium- to long-term, the move is expected to help Nvidia expand into large-size cloud datacenter and edge computing server markets.
Arm only has a limited share in the server CPU market at the moment, but is starting to obtain orders for cloud datacenter, high-performance computing and edge computing applications. As the architecture is having strong potential in cloud and edge computing products, combining the CPU technology with Nvidia's leadership in AI server development would make the GPU giant's new CPU platform rather competitive in AI-related businesses, Digitimes Research believes.
Nvidia could also combine its GPU technologies with the CPU platform to further enhance their instruction set architecture and AI acceleration software library to develop competitive server solutions.