16 Minutes News by a16z

Nvidia + Arm

Episode Summary

with @stevesi @withfries2 @smc90 We cover the latest news since Nvidia announced its intent to acquire Arm (including recent geopolitical concerns around the deal). But what's hype, what's real here -- and the broader history of computing innovation that's relevant here -- when it comes to understanding the broader implications, and players affected, by a potential merger?

Episode Notes

We cover the latest news since Nvidia (maker of GPUs among other things) announced its intent to acquire Arm (provider of silicon IP for system-on-chips inside billions of devices), arguing that "This combination has tremendous benefits for both companies, our customers, and the industry." But how so, when critics are worried about channel conflict, shepherding the broader ecosystem of users, and other issues? Some believe the deal may not go through, and there are also concerns about it for geopolitical reasons (U.S.-based Nvidia, UK-based Arm, China), so how do we tease apart "what's hype/ what's real" here when it comes to understanding the broader implications of the deal?

In this episode of our news analysis show, we go beyond the current headlines and focus on the deeper questions -- and longer history of computing innovation -- behind what a potential merger like this could mean for the industry. Given the various tech trends involved here -- from cloud-native and mobile-first to "ML inside", as well as computing going more and more to the edges -- where do and don't the (seemingly) inherent low-energy, low-cost advantages of the RISC architecture, or rather, Arm vs. Intel chip designs come in? Wherefore open source, could a consortium work? If value is always moving up the stack -- and the divisions between hardware, software, firmware, applications, etc. don't remain stable for a very long time -- who are the players that are really changing the game here... And what if it's the entire gameboard that's changed? Former Microsoft Windows president and a16z board partner Steven Sinofsky and a16z operating partner Frank Chen share their thoughts on all this and more with host Sonal Chokshi.

image: Adam Greig / Flickr


The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. In addition, this content may include third-party advertisements; a16z has not reviewed such advertisements and does not endorse any advertising content contained therein.

This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments for which the issuer has not provided permission for a16z to disclose publicly as well as unannounced investments in publicly traded digital assets) is available at https://a16z.com/investments/.

Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.