NVIDIA, a leader in the artificial intelligence (AI) chip space, is reportedly working on ARM personal computer (PC) chips – marking a major challenge for Intel and its long-time market dominance of PCs.
According to a recent Reuters report, which cites two people familiar with the matter, Nvidia has started to design central processing units (CPUs) that use technology from Arm Holdings and can run Microsoft’s Windows operating system.
The news has been damaging to Intel’s shares, which saw a 3.1% decrease on Monday (23 October). Nvidia gained nearly 4% during the same day and Arm saw its stock rise almost 5%.
Qualcomm has been working on its own Arm-based PC chips since 2016, the first company targeted by Microsoft to spearhead the tech. However, the company has struggled with gaining significant sales.
Microsoft granted Qualcomm an exclusive arrangement to manufacture Windows-compatible chips until 2024, Reuters reported, according to two sources familiar with the matter.
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Microsoft has been calling on other chip makers to enter the market with their own versions once the deal expires, the sources told the publication.
Advanced Micro Devices, the second most successful PC chip maker behind Intel, is also looking to create chips for PCs with Arm tech, Reuters reported.
Apple also switched its PC chips from Intel to Arm, leading to the company almost doubling its market share in three years – marking a far greater success with the transition than Qualcomm.
The company switched out its Intel processors in its Mac computers with designs based on Arm’s standards – and has credited the change to the product’s boosted sales.
Chips that use the Arm-based instruction set often use less power, which is integral to battery-powered devices.