As expected, the popular GPU and server provider NVIDIA SoftBank Group Corp. will take over. (SBG)’s share of Arm Limited. The price of the deal is valued at $ 40 billion and was officially announced by NVIDIA late Sunday night. In turn, Softbank acquires a 10 percent stake in NVIDIA and is “committed to Arm’s long-term success.”
Throughout the press release, NVIDIA cited several ways for the company to leverage ARM’s research and development (R&D) and chip design to accelerate plans for artificial intelligence (AI) and modern computing solutions for businesses and consumers.
Details in the announcement were highlighted as follows:
- Unites NVIDIA̵
- NVIDIA will expand ARM’s R & D presence in Cambridge, UK, by establishing a world – class research and education center, and building an ARM / NVIDIA powered AI supercomputer for groundbreaking research
- NVIDIA will continue Arm’s open licensing model and customer neutrality and expand Arm’s IP license portfolio with NVIDIA technology
- Immediately satisfactory NVIDIA’s non-GAAP gross margin and EPS
- $ 40 billion consideration to be met through a combination of NVIDIA shares and cash
Arm will also remain in Cambridge, UK, for the foreseeable future:
Arm will continue to be headquartered in Cambridge. We will expand this great website and build a world-class AI research facility that will support developments in healthcare, life sciences, robotics, self-driving cars and other fields. And to attract researchers and researchers from the UK and around the world to perform groundbreaking work, NVIDIA will build a state-of-the-art AI supercomputer, powered by Arm CPUs. Arm Cambridge will be a world-class technology center.
Arm Holdings is separate from companies such as Qualcomm, Apple, Texas Instruments, Broadcom and NVIDIA. The former company designs and licenses chips, while the latter companies build these platforms through customization and add-ons, while also producing them (called ARM with caps). It will be interesting to see if this agreement with NVIDIA affects the long-term market for the various companies, but the whole point of Arm Holdings is licensing of IP as a business model. However, there may be some disadvantages.
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NVIDIA has had quite a year with shares totaling more than 100 percent, and up over 40 percent from just May. While many are familiar with NVIDIA for its gaming GPUs, the company is highly diversified with leading performance in various segments, including AI, machine learning, data centers and self-driving cars.
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