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Arm and Nvidia expand partnership to support custom AI chips

Arm has announced a major step that will allow its technology based central processing units to work more closely with advanced AI chips through Nvidia’s NVLink Fusion technology. This development is expected to help hyperscale companies that build custom infrastructure by making it easier to combine Arm based Neoverse CPUs with Nvidia’s widely used graphics processing units.

The announcement highlights Nvidia’s growing strategy of forming partnerships across the technology sector as it strengthens its position in the AI industry. By opening its NVLink platform to a wider range of custom chips, Nvidia will allow customers to integrate their own CPU designs instead of relying solely on Nvidia branded CPU options.

Nvidia already offers Grace Blackwell, an AI product that connects several GPUs with an Arm based CPU designed by Nvidia. Other AI server configurations currently use CPUs from Intel and Advanced Micro Devices.

At the same time, companies such as Microsoft, Amazon and Google are developing or deploying their own Arm based CPUs in the cloud. These efforts help them increase control over their systems and lower operational costs.

Arm does not manufacture CPUs but licenses the instruction set that chipmakers need. It also provides chip designs that help partners build Arm based processors faster. As part of the latest announcement, Arm confirmed that custom Neoverse chips will get a new protocol that enables smooth data movement between CPUs and GPUs.

Although CPUs have historically been the most important component in servers, modern generative AI systems are built around AI accelerator chips and most of these are Nvidia GPUs. An AI server can include up to eight GPUs connected to a single CPU.

In September, Nvidia said it would invest five billion dollars in Intel, which is the leading CPU maker. A key part of this investment is focused on enabling Intel CPUs to work inside AI servers using Nvidia’s NVLink technology.

Nvidia had previously attempted to acquire Arm for forty billion dollars in 2020. The deal collapsed in 2022 due to regulatory concerns in the United States and the United Kingdom. Nvidia held a small stake in Arm as of February.

Earlier this month, Softbank sold its entire stake in Nvidia. Softbank is also supporting the OpenAI Stargate project, which plans to use Arm technology along with chips from Nvidia and AMD.

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