Nvidia already commands about 80% of the discrete graphics processors for PCs, as well as most of the AI and HPC GPU market. But it looks like the company is ready to take on yet another major market: processors for client PCs that run Microsoft Windows, reports Reuters. AMD, which has historically competed against Intel on this market with x86 offerings, is also venturing into Arm-based CPUs for desktops and laptops, the news agency claims, citing two sources with knowledge of the matter. Both companies aim to introduce their Arm SoCs for client PCs in 2025.
AMD and Nvidia's decision to offer Arm-based CPUs will be a strategic move, in collaboration with Microsoft's broader initiative to enhance Arm-based processors for Windows PCs, aiming to compete more effectively against the Arm-based system-on-chips used by Apple in its Mac computers.
In 2016, Microsoft selected Qualcomm to lead the initiative of transitioning the Windows operating system to Arm's instruction set architecture, traditionally used in smartphones due to its energy efficiency. Qualcomm was given exclusive rights by Microsoft to create chips compatible with Windows up until the year 2024. But once the exclusivity is expired, some big new players are set to enter this market.
Microsoft’s involvement is crucial, as it aims to encourage and facilitate the development and adoption of Arm-based processors within the PC industry. This encouragement stems from a strategic vision to diversify the processor ecosystem beyond the established x86 architecture primarily owned by Intel. Microsoft's plans also seem motivated by the efficiency and performance demonstrated by Apple's custom Arm-based chips, which have significantly improved battery life and overall performance in Mac computers.
"Microsoft learned from the 90s that they do not want to be dependent on Intel again, they do not want to be dependent on a single vendor," said Jay Goldberg, chief executive of D2D Advisory, in a conversation with Reuters. "If Arm really took off in PC (chips), they were never going to let Qualcomm be the sole supplier."
Entering the domain of CPUs for PCs marks a significant expansion for Nvidia, though not exactly unexpected since the company already tried to address tablets and smartphones with its Tegra offerings in mid-2010s (but largely failed).
Re-entering the Arm-based PC CPU market is not going to be without competitive and technological challenges. AMD and Nvidia will be competing against established players like Apple and Qualcomm, which has been producing Arm-based chips for laptops since 2016 and 2020, respectively.
Meanwhile, success in this endeavor involves overcoming substantial technical barriers. A key challenge lies in the existing heavy investments in the x86 computing architecture, which has been a staple in software development for PCs. Transitioning to Arm-based CPUs requires addressing compatibility issues, as code developed for x86 chips will not directly run on the Arm ISA, necessitating porting software from x86 to Arm.
