Nvidia has just announced its purchase agreement of semiconductor company ARM for $40 billion officially. With the acquisition of ARM, the manufacturer known primarily for its graphics chips will further increase its presence in the mobile computing sector, especially when it comes to bringing AI (artificial intelligence) technology to industry platforms such as smartphones, PCs, and cars autonomous. Also Read - MediaTek teases another premium chipset manufactured on the 6nm Process
The combination of the two companies brings together Nvidia‘s leading AI computing platform with ARM’s vast ecosystem to create the premier computing company for the artificial intelligence era. The manufacturers’ strategy promises to “accelerate innovation while expanding into large, high-growth markets”. SoftBank will remain committed to ARM’s long-term success through its stake in NVIDIA, estimated at less than 10 per cent. Also Read - Asus ExpertBook P2 Review: Versatility for the workaholic
With the purchase of ARM, Nvidia once again has the power to compete at the top of the mobile and connected market. With the enormous strength in the CPU/GPU market, Nvidia had placed itself ahead of other companies like Intel, AMD and Qualcomm in the area of mobile CPUs. Also Read - Apple to unveil first in-house processor for Macs in November: Report
The first impact that comes with thinking about the recent purchase of ARM is that Snapdragon is now a product based on Nvidia technology. ARM will also benefit from joining forces, gaining even more support for the R&D (Research and Development) sectors, as well as access to the entire Nvidia product package. Nvidia also said it would build an AI supercomputer equipped with ARM CPUs at the company’s headquarters in Cambridge, England.
In the official statement, both companies highlighted that ARM will still maintain its licensing model open and neutral with existing customers. The transaction was approved by the boards of directors of Nvidia, SBG and ARM. The details show that Nvidia will pay SoftBank a total of $21.5 billion in Nvidia common shares and $12 billion in cash, which includes $2 billion at the time of signing.
The proposed transaction is subject to customary closing conditions, including receipt of regulatory approvals for the United Kingdom, China, the European Union, and the United States. The transaction is likely to close in approximately 18 months.