Nvidia acquires ARM in $40 billion deal

The deal is expected to be finalised in the next 18 months.
Text: Kim Olsen
Published 2020-09-14

In a move that has been rumoured for some time, Nvidia has bought ARM. The end goal seems to be at the forefront of AI computing as Nvidia will expand the ARM Cambridge research lab, and establish "a world-class AI research and education center and building an ARM/NVIDIA-powered AI supercomputer for groundbreaking research," as the press release reads.

ARM's current portfolio will not be affected, and Nvidia vows to continue the open license model that is currently used.

The $40 billion deal will be paid in a combination of cool cash and shares as Nvidia takes ownership of SoftBank. The deal is expected to be finalised and all transactions completed in 18 months.

There is no doubt that not only the ARM systems powering your Mac and Android devices are of interest, but also AI. The press release stated:

"The combination brings together NVIDIA's leading AI computing platform with Arm's vast ecosystem to create the premier computing company for the age of artificial intelligence, accelerating innovation while expanding into large, high-growth markets. SoftBank will remain committed to Arm's long-term success through its ownership stake in NVIDIA, expected to be under 10 percent. AI is the most powerful technology force of our time and has launched a new wave of computing," said Jensen Huang, founder and CEO of NVIDIA.

"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. Our combination will create a company fabulously positioned for the age of AI."

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