The rumored deal between Nvidia and SoftBank to acquire chip designer Arm is just weeks away from completion, sources familiar with the matter told Bloomberg. If completed, the deal is expected to be the largest in semiconductor history.

Recent reports have suggested that Nvidia is close to signing a deal to acquire Arm, as previous rumors have suggested, as Arm's architecture and designs have been incorporated into chips used in the smartphone and computing industries and are becoming rivals to Intel's and AMD's x Nvidia is using Arm chips in its Nintendo Switch, autonomous chips, and embedded systems.

Nvidia will not have a major impact on the GeForce graphics card lineup as we gamers know it. However, it will likely spur the Green Team to a complete system. The next generation of Nintendos could be authentically all Nvidia-powered.

It has also been suggested that Nvidia is the only company officially competing for Arm at this time, or the only one currently known. All of this suggests that there is a relatively high likelihood that the deal will close. [However, Nvidia will likely need a large sum of money to acquire Arm. SoftBank, a Japanese company, acquired the Cambridge, England-based semiconductor company in 2016 for a total of $32 billion. Its valuation is also on the rise. With major customers like Apple, which earlier this year publicly stated it would switch from Intel's x86 to Apple-designed Arm chips, the company's value is expected to more than double by 2025, the report said.

Speaking of Apple, the company is said to hate Nvidia with a passion. As such, it is hard to imagine that Nvidia would be particularly excited about the fact that it may soon have complete control over the licensing of the architecture on which it currently relies. Still, Nvidia cannot afford to play favorites if it wants to be liked by regulators.

Another likely option for Softbank, which is looking to cut back on some of its recently acquired assets, would be to take Arm public.

Doing so would avoid the scrutiny of regulators and Nvidia's competitors, who would likely be wary of any deal that would put Arm's designs or access to its chips in the hands of a competitor. nvidia faced a lot of scrutiny last year when it acquired Mellanox for $6.9 billion. faced, which it completed in 2020 after some back-and-forth with regulators.

This deal with Mellanox was Nvidia's largest at the time; a potential Arm acquisition would easily dwarf it.

If the rumors are true, there will be a formal announcement from Nvidia, Softbank, and Arm in the near future. And what a turn of the tide that would be for Nvidia. Softbank's Vision Fund, established to invest in the technology sector, at one point held $3.63 billion worth of Nvidia shares. However, during Nvidia's stock price collapse in late 2018 and early 2019, SoftBank made headlines by dumping every bit of that stock.

And now, after the stock price was in great shape, Nvidia is reportedly looking to acquire one of Softbank's most valuable assets. If that happens, CEO Jen-Hsun Huang could get into the CPU business, offering SoCs and systems for consoles, automotive, and servers.