NVIDIA's CEO, Jen-Hsun Huang just announced Project Denver - its first CPU architecture design ever, based on ARM's ISA. This is a custom design done by NVIDIA in conjunction with ARM and targeted at the high performance computing (HPC) market.

This is a huge announcement from NVIDIA, but not entirely unexpected. Prior to Project Denver NVIDIA licensed ARM IP but developed its own IP everywhere else for use in Tegra. Going forward, NVIDIA is turning into a full fledged SoC architecture company. This is a huge step in NVIDIA becoming a major player in the SoC evolution going forward.

Update: NVIDIA provided some more details on the announcement. Project Denver is targeted at everything from PCs to HPC/servers. This is completely a high end play going after the x86 stronghold. Project Denver ties in completely with Microsoft's announcement to bring Windows 8 to ARM next year.

NVIDIA also announced that it will be licensing ARM's Cortex A15 core, presumably for use in lower end devices (e.g. smartphones). I wouldn't be surprised if NVIDIA eventually moves to its own architecture based on ARM across the board.