Nvidia today confirmed that it is acquiring chip designer Arm from SoftBank for $ 40 billion. In particular, Apple licenses Arm Holdings technology for the A-Series processors used in the iPhone and iPad, as well as the upcoming Apple Silicon chips for Mac.
Reports first suggested that SoftBank was considering a sale of Arm Holdings back in July. The agreement has now become official. As reported by Bloomberg, Nvidia will acquire Arm Holdings from SoftBank for $ 21.5 billion in stock and $ 12 billion in cash, as well as a $ 2 billion payment upon signing and an additional $ 5 billion, subject to Arm performance.
For Apple, it is unclear what Nvidia̵
Nvidia CEO Jensen Huang emphasized that the company has no intentions of doing anything that could lead to customers such as Apple passing away:
Nvidia CEO Jensen Huang said he loves Arm’s business model and wants to expand its broad customer base. As for concerns, the deal will disrupt Arm’s relationships with customers, including Apple Inc., Huang said, adding that Nvidia spends a lot of money on the acquisition and has no incentive to do anything that could lead to customers’ demise.
Apple launched licensing technology from Arm in 2006 for the iPhone. A-Series processors are now used on the iPhone and iPad, as well as products such as the HomePod and Apple TV. Apple also just confirmed at WWDC that the Mac will switch to Apple Silicon processors, which will also be based on Arm technologies.
As we noted in July, Arm Holdings was founded in November 1990 as Advanced RISC Machines Ltd and structured as a joint venture between Acorn Computers, Apple and VLSI Technology.
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