NVIDIA to acquire Arm from SoftBank for $40 billion

The purchase will see NVIDIA leveraging Arm's CPUs and expanding the Cambridge-based headquarters with an AI supercomputer.

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NVIDIA has brokered an agreement to purchase Arm Limited from SBG and SoftBank Vision Fund for $40 billion. This purchase will be a mixture of both NVIDIA shares and cash, and will accretive to NVIDIA’s non-GAAP gross margin and EPS. It will also be a huge step forward in the advancement of artificial intelligence.

This is a momentous occasion for NVIDIA and the march toward greater and more powerful AI computing. Jensen Huang, founder and CEO of NVIDIA, has stated in the official press release that Arm will remain at its headquarters in Cambridge, where NVIDIA will expand the site with a world-class AI research facility and will also build a state-of-the-art AI supercomputer, powered by Arm CPUs.

“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,” writes Masayoshi Son, chairman and CEO of SBG, in the press release. “And is why SoftBank is excited to invest in Arm’s long-term success as a major shareholder in NVIDIA.”

SoftBank will be receiving $21.5 billion in NVIDIA common stock and $12 billion in cash. As part of the transaction, NVIDIA will also issue $1.5 billion in equity to Arm employees. The press release also notes that NVIDIA will finance the cash portion with balance sheet cash and that the transaction does not include Arm’s IoT Services Group.

Right now, the team at Arm have plans in place that were started when SoftBank originally acquired the company in 2016. These commitments are scheduled to be completed in September 2021. These will continue even after the purchase is finalized.

This is a major purchase and a definite victory for a company such as NVIDIA. It was only at the start of the month that the company was unveiling its next line of GPUs, the exceptionally powerful 30 series. It’s certainly exciting to think where we could be computing-wise in the next couple of years.

You can read the full press release of the NVIDIA acquisition of Arm via the NVIDIA site. Be sure to check out the Shacknews NVIDIA page for more coverage and the latest news.

Guides Editor

Hailing from the land down under, Sam Chandler is relatively new to the industry, getting his start a few years ago as a writer-for-hire. After bouncing round a few universities, securing a bachelor degree, and finding his feet, he's found his new family here at Shacknews as a Guides Editor. There's nothing he loves more than crafting a guide that will help someone. If you need help with a guide, or notice something not quite right, you can Tweet him: @SamuelChandler 

From The Chatty
  • reply
    September 13, 2020 6:10 PM

    Sam Chandler posted a new article, NVIDIA to acquire Arm from SoftBank for $40 billion

    • reply
      September 13, 2020 6:51 PM

      1.5 Billion in equity for Arm employees is pretty cool.

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        September 14, 2020 11:07 AM

        Yeah since they're probably all gonna get fahhrrrrrrrred? :(

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      September 13, 2020 6:56 PM

      Intel is probably getting worried about the long term outlook due to this.

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        September 13, 2020 7:43 PM

        Hard to say. Intel has their own foundry, whereas ARM and Nvidia don't. However, Intel has had a lot of problems with the fab process lately. Like a lot. They're going to be 2 years behind on their die shrink.

        If nvidia want's to push ARMs movement in servers, and I really think they want to push ARM into AI, then yes, Intel would be very worried.

        Well, ya I guess Intel would be worried. The other key thing I think nvidia gets from arm is better thermal management, which is key in the server/enterprise space as well as in mobile. All areas that has been Intel's bread-and-butter. Ya, they probably are.

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          September 14, 2020 4:29 AM

          How’s that working for their 7nm process?

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          September 14, 2020 11:27 AM

          I assume that in a couple years there will be a Bladecenter-like chassis that takes Nvidia cards that are integrated ARM CPU/Nvidia GPU/stupidfast RAM modules.

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        September 13, 2020 7:48 PM

        Truthfully, Intel probably looking to buy Qualcomm.

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        September 13, 2020 8:00 PM

        I have to assume they've been in a worried state for a few years now.

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      September 13, 2020 7:58 PM

      That cost an arm and a leg

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