AMBA is an on-chip bus architecture introduced in 1996 by ARM that defines the protocol for connecting processor and peripheral components. It has evolved over time to include buses like AHB for high performance, ASB for systems, and APB for low-power peripherals. AMBA is now an open standard for on-chip communication and the latest version, AMBA 4 from 2010, defines advanced interfaces like ACE and AXI that are used in modern ARM processors.