Nvidia to directly challenge Intel with Arm-based 'Grace' server chip

FILE PHOTO: A NVIDIA logo is shown at SIGGRAPH 2017 in Los Angeles, California, U.S. July 31, 2017. REUTERS/Mike Blake/File Photo

(Reuters) - Nvidia Corp on Monday said it plans to make a server processor chip based on technology from the United Kingdom's Arm Ltd, putting it in the most direct competition yet with rival Intel Corp and adding a layer of complexity to the antitrust review of Nvidia's $40 billion deal to buy Arm.

Intel is the world's biggest maker of central processors for data center servers but has increasingly seen competition from Arm-based chips. With its "Grace" server processor, Nvidia will be the largest chip company so far to challenge Intel in its key market.