the uk government is looking into the national security implications of a deal worth 40 billion dollars that has us-based nvidia purchasing british chip designer arm holdings we've got the latest in a moment but before we get into it don't forget to subscribe to our channel like this video and click on the bell so that you get notified when we release new ones with uk-based computer chip manufacturer arm holdings being sold to the american graphics chip specialists nvidia for 40 billion dollars just four years after japanese conglomerate softbank bought the company for eight billion dollars less here's becca to explain arm creates computer chip designs that others then customize to their own ends it also develops instruction sets which define how software controls processors arms technology is at the heart of most smartphones among many other devices including a majority of single board computers such as the raspberry pi odroid xu4 or roc pro 64 which also makes it the heart of pine 64's pine book pro pro arm will also power apple's new macbook lineup nvidia has promised to keep the business based in the uk to hire more staff and to retain arm's brand it added that the deal would create the premier computing company for the age of artificial intelligence california headquartered nvidia overtook intel to become the world's most valuable chip maker in july until now it is specialized in high-end graphics processing units these are commonly used by gamers to deliver more detailed visuals as well as by professionals for tasks including scientific research machine learning and cryptocurrency mining in our case we render all our video in real time using nvidia's cuda platform nvidia is also one of arm's clients using its designs to create its lineup of tegra central processing units thank you becca now seven months following the original purchase announcement digital minister oliver dowden said he has issued a so-called intervention over the sale he says quote as a next step and to help me gather the relevant information the uk's independent competition authority will now prepare a report on the implications of the transaction which will help inform any further decision nvidia for their part don't believe the deal poses any national security problems they say they have been and will continue to work closely with the british authorities throughout the deal from a competition standpoint the nvidia deal puts a vital supplier to multiple silicon chip makers under the control of just one company arm is not just about smartphones and single board computers however they're a major player in global semiconductor manufacturing and according to the government that underpins critical infrastructure in britain including within technology related to defense and national security matters they added that officials from the security community had informed the decision to intervene the competition and markets authority will now assess the competition jurisdiction and national security impact of the deal with a report due by the end of july 2021 at that point dowden will make the decision between allowing the deal to pass or pursuing a more in-depth investigation should that be in order thanks for watching the category 5 tv newsroom you can become part of our fleet for exclusive bonus content at patreon.com category5 i'm robbie ferguson see you next time [Music] foreign