Nvidia is in advanced talks to acquire Arm, the well-known chip company, according to Bloomberg.
Arm was acquired by SoftBank Group Corp., four years ago.
Nvidia and Arm aim to reach an agreement in the coming weeks, whistleblowers said, asking not to be identified because the information is private.
No final decisions have been made and negotiations could go further or even collapse, the figures say. SoftBank may assess the interest of other companies if it fails to reach an agreement with Nvidia, while representatives of Nvidia, SoftBank and Arm declined to comment.
Any deal with Nvidia, which is an Arm customer, would most likely trigger a slider control as well as a wave of reactions from other users technology the company's. Other Arm customers could require assurances that a new owner would continue to provide equal access in the Arm command set. Such concerns led SoftBank, a neutral company, to buy Arm the last time it went on sale.
The billionaire Masayoshi Son has sold some of SoftBank's assets as it seeks to repay the debt to Japanese group.
SoftBank explores options for exiting the entire Arm or a portion of it, through a sale or through a public listing shares. The chip design company could go public next year if SoftBank decides to make that choice, the informants said.
Arm is becoming more and more valuable as the company pushes to use its architecture in more smart cars, data centers and networking tools, which explains Nvidia 's intention.
The company could be worth $ 44 billion if it seeks an initial public offering special offer next year, an estimate that could rise to $ 68 billion by 2025, according to the New Street Research LLP.