Nvidia Acquires Arm for $40 Billion

Wednesday, 16 Sep, 2020

Apple had apparently has shown interest in Nvidia, however, even if with the adoption of ARM designs for the processor inside new Macs, the corporate structure of ARM would not be a good fit for Apple.

Arm Holdings is separate from companies like Qualcomm, Apple, Texas Instruments, Broadcom, and NVIDIA. So, what's the problem this time?

"Arm plays in areas that Nvidia does not or isn't that successful, while Nvidia plays in many places Arm doesn't or isn't that successful", said Moorhead in a Forbes op-ed late Sunday.

At any rate, assuming all goes through, Nvidia will be investing more into ARM's headquarters in Cambridge, UK.

A source at one USA company using Arm designs said the move would likely accelerate an industry shift already under way from Arm designs to RISC-V.

Why Does Nvidia To Raise Funds? That move would in theory allow those companies to compete with Nvidia.

Chinese companies including Alibaba and Huawei are members of the RISC-V foundation, an open-source project that originated at the University of California, Berkeley and which many experts see as a potential beneficiary of any retreat from Arm.

But guess what? That's now official with NVIDIA writing on their blog they had a definitive agreement under which NVIDIA will acquire Arm Limited from SoftBank Group Corp.

If the company's British character and open business model could not be protected, it would be better for Mr. Johnson to back a flotation on the London Stock Exchange, Mr. Hauser said. The UK's Shadow Business Secretary, Ed Miliband, said in a statement to CNBC on Friday, that the government needed to consider "the possible implications for where the company is headquartered and the thousands of jobs in Britain that depend on it". The opposition party has since reaffirmed its position, calling on the government to clarify whether the takeover has legally binding assurances.

Arm's importance far outweighs its revenue, which comes from licensing chip fundamentals and selling processor designs. Arm Cambridge will be a world-class technology center. Learning from data, AI supercomputers can write software no human can.

"Anything that creates more concentration in the industry to the benefit of a U.S. company, I would think that's not aligned with what China wants, said Art Dicker, director at Shanghai-based R&P China Lawyers".

"AI is the most powerful technology force of our time and has launched a new wave of computing", said Jensen Huang, founder and CEO of NVIDIA.

When Softbank acquired ARM, it promised to keep the company's headquarters in the United Kingdom and to increase the number of local jobs, which it did. At closing, the number of NVIDIA shares to be issued is 33.4 million. The amount includes $2 billion in cash payable at signing and $1.5 billion in equity to Arm employees.

The companies say it will likely take about a year and a half for the acquisition to be completed, because, among other things, it will need to be approved by regulators in the UK, US, China, and the European Union.