The best Nvidia buys ARM for $ 40 billion
After weeks of speculation and negotiations, Nvidia announced on Sunday, September 13, that it had bought the chipmaker ARM Holdings for 40,000 million dollars from Softbank, its former owners. This is the largest deal ever in the processor industry.
Nvidia will pay 12,000 million dollars in cash, while it will have to pay 2,000 million dollars at the time of signing the contract. Nvidia will also invest $ 21.5 billion in shares, while ARM employees will receive Nvidia shares valued at $ 1.5 billion.
With the purchase of ARM, Nvidia hopes to be well prepared for the age of artificial intelligence and the Internet of Things. As its founder and CEO Jensen Huang explained, “AI is the most powerful technology force today and it has ushered in a new era for computing.”
“In the next few years,” he continues, “billions of computers with artificial intelligence will create a new Internet of Things that will be vastly larger than today’s Internet of People. Our merger will create a company that is fantastically positioned for the age of artificial intelligence. “
ARM will continue to be headquartered in Cambridge, UK, which will become a “world-class artificial intelligence research location”. The goal is to create an AI supercomputer based on ARM technology.
For Softbank, the original investment they made in the business has paid off: Four years ago, the holding company invested $ 32 billion in ARM. On the other hand, Nvidia will have access to hundreds of patents that could help them in the development of their products.
The boards of directors of Softbank, Nvidia and ARM have already approved the acquisition, but are awaiting approval from the United States, China, the United Kingdom and the European Union.
What does this mean for Apple?
It shouldn’t have any impact on Apple, even though the company has decided to switch to ARM architecture for the chip design of its Macs. Apple already uses this architecture for other processors (such as iPhone, iPad, etc.), so it does not need ARM to be independent in order to use them.
Apparently Apple would have shown an interest in Nvidia. However, even after deciding to include ARM designs for the processors in its Macs, the ARM corporate structure would not be a good fit for Apple.