Mobile processors across smart phones and smart devices from Apple to Samsung are all created using designs from the UK-based Arm. Odds are everything from your phone to tablet to TV has a chip built off of an Arm design. Including the Nintendo Switch. Right off the bat that explains the $40 Billion (USD) value -- but either way it's a staggering acquisition in terms of potential. No doubt one of the biggest tech deals in recent memory, one that is sure to make NVIDIA a powerhouse in terms of CPUs and GPUs.

As PC gamers, when it comes to NVIDIA we all know the GeForce name -- most recently NVIDIA made waves with its RTX 30 series reveal, the company's next-generation of PC graphics cards due for release this week.

But NVIDIA is also market leader and pioneer in the field of AI and high-end computing, using its GPU technology for all manner of cutting-edge research and AI development. In fact, NVIDIA's official statement relating to the acquisition is almost entirely focused on the AI potential.

“AI is the most powerful technology force of our time and has launched a new wave of computing,” said Jensen Huang, founder and CEO of NVIDIA. Possibly whilst wearing a leather jacket. “In the years ahead, trillions of computers running AI will create a new internet-of-things that is thousands of times larger than today’s internet-of-people. Our combination will create a company fabulously positioned for the age of AI."

The company's official summary is as follows:

Unites NVIDIA’s leadership in artificial intelligence with Arm’s vast computing ecosystem to drive innovation for all customers.

NVIDIA will expand Arm’s R&D presence in Cambridge, UK, by establishing a world-class AI research and education center, and building an Arm/NVIDIA-powered AI supercomputer for groundbreaking research.

NVIDIA will continue Arm’s open-licensing model and customer neutrality and expand Arm’s IP licensing portfolio with NVIDIA technology.

Immediately accretive to NVIDIA’s non-GAAP gross margin and EPS.

Consideration of $40 billion to be met through a combination of NVIDIA shares and cash.

As per above Arm will remain in the UK and it will be business as usual in relation to its licensees and remaining open and neutral. This is the chip innovation and philosophy that has led to 180 billion devices and tech gadgets powered by Arm technology. Apple's next-generation of Macs will be Arm-based, and Microsoft is looking to do the same with the Surface range, thanks to Windows 10 for Arm.

Now, I'm not an expert on mobile chip technology by any stretch though I do know that Arm's work in RISC architecture (fewer transistors,less power) has led to where we are now in terms of powerful mobile devices. And with that knowledge, yeah, this is a pretty major acquisition.