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Nvidia apparently closing in on the deal to buy ARM for $40 Billion, deal expected to be announced early next week


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WOW.  It's actually happening. 

 

This is a MASSIVE shakeup for the entire tech industry.  Obviously there are going to be regulations they will need to follow, but this puts Nvidia on equal footing with AMD and Intel.  I would imagine both AMD and Intel will be quite concerned with this announcement.

 

Nvidia Close To Buying ARM for $40 Billion: Report | Tom's Hardware (tomshardware.com)

 

Quote

n a deal that would undoubtedly change the semiconductor industry for years to come, according to the Wall Street Journal, Nvidia is close to finalizing a deal with SoftBank to purchase ARM Holdings for more than $40 billion in stock and cash. The deal is expected to be officially announced early next week. While the exact terms and final sale price of the deal are unknown, the $40 billion offer would represent a tidy profit for SoftBank, which purchased ARM for $32 billion four years ago.

 

As part of the deal, Nvidia would likely be subject to regulatory approvals that would compel the company to continue to licence the ARM architecture to existing customers, but it would still gain access to a treasure trove of IP and engineering talent. That could enable the company to quickly develop custom CPU architectures for its own use, which would then further the company's broadening push into the profit-rich data center market.

 

SoftBank Nears $40 Billion Deal to Sell Arm Holdings to Nvidia - WSJ

 

Nvidia CPU and APUs incoming.  Maybe Nvidia console APUs in the future :vince: 

Edited by Remij
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1 minute ago, Alphonse said:

why would the sheep be raped by this :sass2:

Yea, if anything this helps the Sheep.  Nintendo and Nvidia were both lucky.  Nvidia was lucky Nintendo had a product for their Tegra chips which weren't selling at all, and Nintendo was lucky they got a great deal on those chips and built a good relationship with Nvidia which looks to be in an even stronger position now to support future Nintendo hardware.  Nintendo was Nvidia's foothold on the console market and is a big reason why Nvidia's gaming revenue was higher than previous years.

 

This move gives Nvidia so much potential in the data center.. it's quite clear they are looking to take a complete hold on that.. so we'll have to see what happens there.  But in the future, with Apple ditching Intel and going with ARM... and now Nvidia... we could have Apple and PCs with ARM cpus...  That hurts Intel sooo fucking bad.  And with their process manufacturing problems.. things could go from bad to worse.  Nvidia has enough marketshare that if they release a beastly ARM CPU for PCs, they could compel Microsoft to further optimize and improve Windows for ARM.  If that happens.. AMD and Intel are in trouble.

 

The big one is Apple.  With Apple ditching x86 for ARM... this could strongly push the direction of computing towards ARM cpus.

 

Nvidia know what they are doing :deniro:

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AMD having success with Ryzen cpus isn't all that bad for Intel, because at the very least, PC builders, Windows OS, Apple OS, and software makers will still keep on developing for x86.

 

If people buy Ryzen CPUs today, Intel can probably still get those customer later on if they release a great CPU a few years later. Its still a x86 userbase.

 

ARM was usually reserved for just the smartphone market, but now if ARM CPUs start getting into traditional computing devices.......Intel is really fucked.

 

I have no doubt that Nintendo will make a fantastic powerful console during this decade, and Sony is going to start considering making a move.

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22 hours ago, jehurey said:

AMD having success with Ryzen cpus isn't all that bad for Intel, because at the very least, PC builders, Windows OS, Apple OS, and software makers will still keep on developing for x86.

 

If people buy Ryzen CPUs today, Intel can probably still get those customer later on if they release a great CPU a few years later. Its still a x86 userbase.

 

ARM was usually reserved for just the smartphone market, but now if ARM CPUs start getting into traditional computing devices.......Intel is really fucked.

 

I have no doubt that Nintendo will make a fantastic powerful console during this decade, and Sony is going to start considering making a move.

Lol powerful in comparison to what? I don't see them going 3 gens straight with weak consoles then flipping the script. 

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14 minutes ago, Liquid said:

Lol powerful in comparison to what? I don't see them going 3 gens straight with weak consoles then flipping the script. 

 

Let the man dream Remy.

 

That said... tech like DLSS and their other AI based stuff could help any Nintendo console punch above it's weight.  

 

If Nvidia pushes ARM outside of the data center and develops a custom APU for a future Nintendo console, Nintendo is already set up to take advantage of it.  A dedicated ARM cpu for console COULD potentially be more efficient and faster than x86 console CPUs.. so it could be closer than you think power-wise.

 

Anyway, that's still a long way out.  Probably wouldn't hit the next Switch as that console's undoubtedly deep in development already.

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So I think the deal just went through.

 

nVidia bought it for $40 billion.  Man, they must feel good about their upcoming demand for their new video cards.

 

NVIDIA to Acquire Arm for $40 Billion, Creating World’s Premier Computing Company for the Age of AI

Sunday, September 13, 2020
 
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  • Unites NVIDIA’s leadership in artificial intelligence with Arm’s vast computing ecosystem to drive innovation for all customers
  • NVIDIA will expand Arm’s R&D presence in Cambridge, UK, by establishing a world-class AI research and education center, and building an Arm/NVIDIA-powered AI supercomputer for groundbreaking research
  • NVIDIA will continue Arm’s open-licensing model and customer neutrality and expand Arm’s IP licensing portfolio with NVIDIA technology
  • Immediately accretive to NVIDIA’s non-GAAP gross margin and EPS
  • Consideration of $40 billion to be met through a combination of NVIDIA shares and cash

 

NVIDIA and SoftBank Group Corp. (SBG) today announced a definitive agreement under which NVIDIA will acquire Arm Limited from SBG and the SoftBank Vision Fund (together, “SoftBank”) in a transaction valued at $40 billion. The transaction is expected to be immediately accretive to NVIDIA’s non-GAAP gross margin and non-GAAP earnings per share.

 

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.

 

“Simon Segars and his team at Arm have built an extraordinary company that is contributing to nearly every technology market in the world. Uniting NVIDIA’s AI computing capabilities with the vast ecosystem of Arm’s CPU, we can advance computing from the cloud, smartphones, PCs, self-driving cars and robotics, to edge IoT, and expand AI computing to every corner of the globe.

“This combination has tremendous benefits for both companies, our customers, and the industry. For Arm’s ecosystem, the combination will turbocharge Arm’s R&D capacity and expand its IP portfolio with NVIDIA’s world-leading GPU and AI technology.

 

“Arm will remain headquartered in Cambridge. We will expand on this great site and build a world-class AI research facility, supporting developments in healthcare, life sciences, robotics, self-driving cars and other fields. And, to attract researchers and scientists from the U.K. and around the world to conduct groundbreaking work, NVIDIA will build a state-of-the-art AI supercomputer, powered by Arm CPUs. Arm Cambridge will be a world-class technology center.”

 

“NVIDIA is the perfect partner for Arm,” said Masayoshi Son, chairman and CEO of SBG. “Since acquiring Arm, we have honored our commitments and invested heavily in people, technology and R&D, thereby expanding the business into new areas with high growth potential. Joining forces with a world leader in technology innovation creates new and exciting opportunities for Arm. This is a compelling combination that projects Arm, Cambridge and the U.K. to the forefront of some of the most exciting technological innovations of our time and is why SoftBank is excited to invest in Arm’s long-term success as a major shareholder in NVIDIA. We look forward to supporting the continued success of the combined business.”

 

“Arm and NVIDIA share a vision and passion that ubiquitous, energy-efficient computing will help address the world’s most pressing issues from climate change to healthcare, from agriculture to education,” said Simon Segars, CEO of Arm. “Delivering on this vision requires new approaches to hardware and software and a long-term commitment to research and development. By bringing together the technical strengths of our two companies we can accelerate our progress and create new solutions that will enable a global ecosystem of innovators. My management team and I are excited to be joining NVIDIA so we can write this next chapter together.”

 

Commitment to Arm and the UK
As part of NVIDIA, Arm will continue to operate its open-licensing model while maintaining the global customer neutrality that has been foundational to its success, with 180 billion chips shipped to-date by its licensees. Arm partners will also benefit from both companies’ offerings, including NVIDIA’s numerous innovations.

 

SoftBank and Arm are fully committed to satisfying the undertakings made by SoftBank when it acquired Arm in 2016, which are scheduled to complete in September 2021. Following the closing of the transaction, NVIDIA intends to retain the name and strong brand identity of Arm and expand its base in Cambridge. Arm’s intellectual property will remain registered in the U.K. 

 

NVIDIA will build on Arm’s R&D presence in the U.K., establishing a new global center of excellence in AI research at Arm’s Cambridge campus. NVIDIA will invest in a state-of-the-art, Arm-powered AI supercomputer, training facilities for developers and a startup incubator, which will attract world-class research talent and create a platform for innovation and industry partnerships in fields such as healthcare, robotics and self-driving cars. 

 

Additional Transaction Details
Under the terms of the transaction, which has been approved by the boards of directors of NVIDIA, SBG and Arm, NVIDIA will pay to SoftBank a total of $21.5 billion in NVIDIA common stock and $12 billion in cash, which includes $2 billion payable at signing. The number of NVIDIA shares to be issued at closing is 44.3 million, determined using the average closing price of NVIDIA common stock for the last 30 trading days. Additionally, SoftBank may receive up to $5 billion in cash or common stock under an earn-out construct, subject to satisfaction of specific financial performance targets by Arm.

 

NVIDIA will also issue $1.5 billion in equity to Arm employees.

 

NVIDIA intends to finance the cash portion of the transaction with balance sheet cash. The transaction does not include Arm’s IoT Services Group.

 

The proposed transaction is subject to customary closing conditions, including the receipt of regulatory approvals for the U.K., China, the European Union and the United States. Completion of the transaction is expected to take place in approximately 18 months.

 

Conference Call and Webcast Details 
NVIDIA will conduct a webcast at 5:30 a.m. PT on Monday, September 14, to discuss the transaction. The webcast is available on NVIDIA’s Investor Relations website at https://investor.nvidia.com/. A webcast replay and a copy of the webcast presentation materials will also be available at https://investor.nvidia.com/.

Edited by jehurey
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