Jan 13, 2021 - Technology

Qualcomm buying server chip startup Nuvia for $1.4 billion

An image of the Qualcomm and Nuvia logos

Image: Qualcomm

Qualcomm said Wednesday it will pay $1.4 billion to buy Nuvia, a chip startup founded by former Apple employees.

Why it matters: The move gives Qualcomm fresh ideas for chip designs as the company faces intense competition from Intel, AMD and others.

Between the lines: Nuvia has a custom core based on ARM, which is in the process of being sold to Nvidia, a Qualcomm rival. Buying Nuvia gives Qualcomm more flexibility to move away from ARM, should it eventually do so for business or technical reasons.

  • In its press release, Qualcomm included quotes from a who's who of the phone and computer business announcing their support for the deal, indicating it hopes to use the technology in a wide range of chips.

Details: Qualcomm said founders Gerard Williams III, Manu Gulati and John Bruno will join Qualcomm along with the rest of the company's staff.

Yes, but: Williams, who is Nuvia's CEO, is in the midst of a legal battle with Apple. Apple sued Williams in December 2019, claiming that he breached his contract with Apple.

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