Arm Holdings and NVIDIA Collaborate to Accelerate AI

Arm Holdings Integrates NVIDIA's NVLink Fusion Technology into Neoverse

Arm Holdings (NASDAQ:ARM) announced that it will integrate NVIDIA (NASDAQ:NVDA)'s NVLink Fusion technology into its Neoverse platform. This move aims to accelerate AI data center builds and reduce integration challenges.

The Neoverse family is designed for large-scale workloads and is utilized by major hyperscalers such as Amazon (AMZN), Microsoft (MSFT), Oracle (ORCL), Google (GOOG), and Meta Platforms (META). Arm notes that the Neoverse platform is on track to capture approximately 50% market share among the largest hyperscalers by the end of the year. Additionally, the $500 billion Stargate project is also utilizing this technology.

Analysts indicate that the NVLink Fusion technology combines memory and bandwidth between processors, allowing larger AI models to operate more efficiently. This integration is expected to accelerate the adoption of specialized AI infrastructure among cloud providers. This move comes after other chip partnerships in the industry.

Investors reacted negatively to these developments; NVIDIA shares fell approximately 3% in morning trading, while Arm shares declined by about 4%. NVIDIA is scheduled to announce its fiscal third-quarter results after the market closes on Wednesday.