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The move aligns with Microsoft's broader goal of competing with Apple in the Arm-based processor market.
Apple's success with its in-house Arm-based Apple Silicon has significantly increased its market share in the PC industry, and Nvidia aims to capture a piece of the pie.
While Nvidia has experience with Arm-based chips for data centers, this new venture is focused on Windows PCs. AMD is also reportedly preparing to launch Arm-based PC chips around the same time. Qualcomm, which has produced Windows laptop processors since 2016, will see its exclusivity agreement with Microsoft for Arm-based Windows chip designs expire in 2024, opening the door for new competitors.
The upcoming Arm-based processors for Windows PCs will prioritize generative AI capabilities, in line with Microsoft's focus on AI. Microsoft has been encouraging chipmakers to incorporate advanced AI-powered features into their silicon, reflecting the growing importance of AI in the tech industry.