Nvidia Purchases ARM

Nvidia officializes purchase of ARM for $ 40 billion

Nvidia + ARM

Nvidia made an announcement this Sunday (Sept. 13) and promises to completely change the mobile chip market. The company confirmed that it will acquire ARM, a British manufacturer belonging to the Softbank group and which specializes in chips for smartphones and data centers. The deal was closed for $ 40 billion.

Unlike its competitors like Intel and AMD, which manufacture chips for companies to compare and use in their products, ARM designs the chips to license this architecture to manufacturers. In this way, companies like Apple, Samsung or Microsoft can develop their chips customized to their needs using the intelligence of ARM.

ARM architecture is perfect for mobile equipment as it has lower cost, less energy consumption and greater heat dissipation. Aple has already announced that it will adopt them in the new generation of its laptops and promises a huge performance increase over the previous ones.

ARM is present in 95% of the world’s smartphones.

“Arm’s business model is brilliant. We will maintain its open-licensing model and customer neutrality, serving customers in any industry, across the world.”

Association

Nvidia also confirmed that ARM will remain in Cambridge, England, and will honor SoftBank’s commitments to continue investing in Great Britain.The company will also begin to license some of its technologies to other companies for the first time, using the services of ARM.

Business

The whole deal will be completed for approximately $ 40 billion. For the payment, which has already been approved by the boards of Nvidia, Softbank and ARM, the division was as follows:

  • $ 21 billion in Nvidia shares
  • $ 12 billion in cash ($ 2 billion at the time of signing)
  • $ 5 billion if ARM achieves goals
  • $ 1.5 billion in shares for ARM employees

Source: The New York Times / Via: CanalTech

Check Also: AMD Announces Keynote Dates for Zen 3 and RX 6000 Big Navi

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