Nvidia to buy Arm for $40 billion from SoftBank

arrm nvidia

  • Nvidia has confirmed that it will take over the processor architecture company Arm from SoftBank.
  • The deal is valued at $ 40 billion and will be paid for through a mix of cash and Nvidia stock.
  • The deal is expected to close in 18 months or early 2022.

As previously rumored, Nvidia has confirmed that it will buy the processor architecture company Arm. The graphics chip maker says it will buy Arm Holdings from its current owner SoftBank for a total of $ 40 billion.

In order for Nvidia Arm to buy, the deal is done through a mix of cash and stock options. This includes using $ 21.5 billion in Nvidia common stock and $ 12 billion in cash, including $ 2 billion payable on signature. The company will also pay out $ 1.5 billion to Arm employees. SoftBank could also receive cash or Nvidia shares valued at up to $ 5 billion as part of an earn-out deal.

The purchase is expected to be completed in around 18 months or sometime in early 2022. It is subject to regulatory approval in the US, UK, China and the European Union.

Jensen Huang, founder and CEO of Nvidia, said in a press release that the deal with Arm “will advance cloud computing, smartphones, PCs, self-driving cars and robotics, improve the Internet of Things and AI computing for everyone Will widen the corner of the world. “

Continue reading: Arm vs x86: instruction sets, architecture and all the important differences explained

Arm’s main office will continue to be based in Cambridge, UK. However, Nvidia plans to expand the offices to become a “world class AI research facility”. There are also plans to build an AI supercomputer with arm designs.

This step is likely to be carefully scrutinized by regulators. Nvidia will be able to control the basic design of processors used by large companies. Arm designs are used as the basis for processors that are suitable for almost all smartphones and tablets. This includes chips from Apple, Qualcomm, and many, many others. Some regulators could find cartel conflicts under this agreement.

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