Nvidia to Purchase Chip-designer ARM in Deal Price $40 Billion

Nvidia has announced that it will take over the chip designer ARM from the current owner SoftBank for a value of 40 billion US dollars.

In a move that will give Nvidia a chance to support previous competitors like Intel and AMD, the California-based company has some exciting plans up its sleeve, including creating a cutting-edge ARM-based A.I. Supercomputers, the opening of developer training facilities, and the introduction of a startup incubator aimed at attracting top-notch research talent.

Nvidia announced that it will implement these plans in the UK, where ARM is headquartered and currently employs around half of its 6,000 employees.

Under the terms of the agreement, the US chipmaker will pay Japanese tech giant SoftBank $ 21.5 billion in shares and $ 12 billion in cash. SoftBank, which ARM bought for $ 32 billion in 2016, will receive around $ 5 billion in cash or stock, depending on ARM's financial performance. Nvidia will also provide $ 1.5 billion in shares to ARM employees.

Nvidia said the deal, which is subject to U.S. regulatory and antitrust scrutiny, will play an important role in improving its artificial intelligence (A.I.) ambitions.

"AI is the most powerful technological force of our time and has sparked a new wave of computers," said Jensen Huang, founder and CEO of Nvidia, in a press release. "In the coming years, trillions of computers with AI will create a new Internet of Things ( Internet of Things (IoT) that is thousands of times bigger than today's human Internet, our combination will create a company that will fit the age of AI

Huang added, "Nvidia's AI Computing Capabilities With the vast ARM CPU ecosystem, we can advance cloud computing, smartphones, PCs, self-driving cars, and robotics to improve the Internet of Things, and AI computing in every corner of the world . "

ARM CEO Simon Segars commented on the collaboration, saying the two companies "share a vision and passion that ubiquitous, energy-efficient computing will help address the world's most pressing problems, from climate change to health care, from agriculture to education. "

ARM, based in Cambridge, about 40 miles north of London, was founded in 1990 before becoming a leading semiconductor and software design company. The company licenses its technology to chip manufacturers. The technology can be found in a wide variety of products around the world, including smartphones, tablets, vehicles and data centers.

After licensing the processor design, an ARM customer can adapt the architecture to suit their own requirements. Licensees typically pay an entry fee, with ARM also charging license fees for each chip that contains its technology. To date, 180 billion chips have been shipped by the company's licensees.

For more information on the importance of Nvidia's acquisition of ARM, see this article on digital trends.

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