Nvidia, a US company and especially known for its graphics chips, will buy Armin, a chip company owned by Japanese Softbank, for $ 40 billion, or about € 34 billion.
Originally, the British Arm is familiar especially with smartphones whose processors are based on the technology it owns.
According to the release, Arm is Nvidia's way to prepare for the era of artificial intelligence.
Armi's research and product development in Cambridge, UK, will be expanded by creating an artificial intelligence research center there and building a new supercomputer there.
The study covers, for example, cloud computing, smartphones, PCs, self-propelled cars and robotics.
- Artificial intelligence is the most powerful technological force of our time and has created a new wave of data processing.
In the coming years, trillions of computers running artificial intelligence will create a new Internet of Things that is thousands of times larger than the current human Internet, Nvidia CEO Jensen Huang says in a statement.
The deal must be approved in Britain, the European Union, the United States and also in China.
The transaction is expected to take about a year and a half.
Chips into a trade war?
According to the BBC, Arm’s founders Hermann Hauser and Tudor Brown don’t look at the deal well.
One reason is that they fear Arm will drift into the U.S. trade war against China.
According to fears, in American ownership, the United States could try to prevent Chinese companies from taking advantage of Arm’s expertise.
"If hundreds of British companies using Army in their products want to sell and export it anywhere in the world - including China's major market - the decision will be made in the White House, not on Downing Street," said Armann founder Hermann Hauser on BBC Radio 4's Today program.
Armin reported that a year ago, in the spring, he terminated cooperation with Chinese smartphone maker Huawei as a result of a fight against a U.S. company.
Read more: Now Huawei has been hit really hard - will the phones be phased out altogether?
Although Huawei uses Kirin chips manufactured by its own HiSilicon subsidiary, their technology is licensed from Arm.
There are other chip makers for smartphones, but their circuits are also based on Arm's technology.
Nvidia has promised to maintain Arm’s “customer neutrality” on which its success rests.