So still! Rumors about the takeover of ARM by Nvidia have become a fact – the transaction amounts to a trifle of $ 40 billion and can be of great importance for the IT industry.
Nvidia is a major player on the processor market – the manufacturer takes over ARM
If you follow the industry media, you know that Nvidia has been talking about the takeover of ARM for a long time. However, the final agreement has only been reached now – it assumes that Nvidia will take over ARM Limited from SoftBank (i.e. SoftBank Group Corp and the SoftBank Vision Fund) for USD 40 billion (i.e. USD 9 billion more than SoftBank paid for ARM in 2016) .
SoftBank will receive $ 21.5 billion in Nvidia stock, $ 12 billion in cash (of which $ 2 billion at signing), $ 1.5 billion will go to ARM employees as share capital, and $ 5 billion is to go to SoftBank at a later time. The transaction is subject to customary closing conditions, including regulatory approvals from UK, China, European Union and US. Ultimately, it is to be completed in about 1.5 years.
In this way, Nvidia becomes the owner of one of the main players on the processor market (or actually a company that sold licenses to other companies for the production of processors based on the ARM architecture – such systems can be found in various market segments, ranging from smartphones, through laptops, and on cars).
ARM acquisition – what does it mean for the industry?
Nvidia declares that ARM processors will continue to use the open licensing model, while maintaining global neutrality for customers. ARM partners will also be able to take advantage of numerous innovations developed by the “green”.
Nvidia announces the creation of a world-class ARM research and development center in Cambridge, UK
Importantly, Nvidia intends to maintain the strong position of the ARM brand. The manufacturer announces that not only will it keep all ARM branches, but even create new jobs and create a world-class ARM research and development center in Cambridge, UK. Intellectual property will continue to be registered in the UK.
Thanks to the acquisition of ARM, Nvidia also wants to strengthen its position in the market of new technologies – special emphasis will be placed on solutions for artificial intelligence, machine learning, autonomous cars, cloud computing and supercomputers. The main competitors (including Intel and AMD) certainly do not have reasons to be satisfied.
What will come of this? There are very divergent opinions on the takeover on the Internet, ranging from very optimistic to extremely negative. Hermann Hauser, co-founder of ARM, says it is an absolute disaster – in his opinion it will destroy the company’s business model and lead to job losses at the company’s Cambridge headquarters and other UK locations.
Źródło: Nvidia, ComputerBase, SoftBank, The Guardian
See more about processors: