Nvidia’s Arm Deal Would Make It the Center of the Chip World

On Sep 13, 2020, NVIDIA and SoftBank Group Corp announced a definitive agreement under which NVIDIA will acquire Arm Limited from SBG in an all-stock transaction for $ 40 billion US dollars.

Combining the two chipmakers would unite leaders in two big tech trends, artificial intelligence, and mobile computing.

The proposed transaction is subject to customary closing conditions, including the receipt of regulatory approvals for the U.K., China, the European Union, and the United States. Completion of the transaction is expected to take place in approximately 18 months.

The acquisition benefits:

•    NVIDIA will expand Arm’s R&D presence in Cambridge, UK, by establishing a world-class AI research and education center, and building an Arm/NVIDIA-powered AI supercomputer for groundbreaking research.

•    This combination has tremendous benefits for both companies, customers, and the industry. For Arm’s ecosystem, the combination will turbocharge Arm’s R&D capacity and expand its IP portfolio with NVIDIA’s world-leading GPU and AI technology.

•    By bringing together the technical strengths of the two companies can accelerate the progress and create new solutions that will enable a global ecosystem of innovators.

•    NVIDIA will invest in a state-of-the-art, Arm-powered AI supercomputer, training facilities for developers, and a startup incubator, which will attract world-class research talent and create a platform for innovation and industry partnerships in fields such as healthcare, robotics, and self-driving cars.

•    The combination will create a company fabulously positioned for the age of AI, the most powerful technology force of our time. In the years ahead, trillions of computers running AI will create a new internet-of-things that is thousands of times larger than today’s internet-of-people.

•    The deal could make Nvidia a strong direct competitor to Intel, which it passed in market value for the first time earlier this year and AMDImpacts on the customers :

•    Unites NVIDIA’s leadership in artificial intelligence with Arm’s vast computing ecosystem to drive innovation for all customers.

•    As part of NVIDIA, Arm will continue to operate its open-licensing model while maintaining the global customer neutrality that has been foundational to its success, with 180 billion chips shipped to-date by its licensees. Arm partners will also benefit from both companies’ offerings, including NVIDIA’s numerous innovations.

•    NVIDIA would protect the confidential information of all customers the way they do today and the way that Arm does today.

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More details:

https://nvidianews.nvidia.com/news/nvidia-to-acquire-arm-for-40-billion-creating-worlds-premier-computing-company-for-the-age-of-ai  https://www.wired.com/story/nvidias-arm-deal-make-center-chip-world/https://www.marketwatch.com/story/nvidias-deal-for-arm-could-mean-a-real-challenge-to-intel-and-amd-but-is-likely-to-face-opposition-2020-09-14

September 16, 2020, by Nader Yousef