Now official: NVIDIA buys ARM chip developer from SoftBank for $ 40 billion

Yesterday, the world's largest publications announced that NVIDIA was buying the British developer of ARM chips from SoftBank, and

Today the American company officially announced this.

What is known

The transaction amount is not disclosed, but according to informationBloomberg, NVIDIA will pay SoftBank Group Corp $40 billion for the company itself, including $21.5 billion in stock and $12 billion in cash. Also, SoftBank could receive an additional $5 billion in cash or shares if ARM develops according to its previous strategy. In addition, the report states that ARM employees will be paid $1.5 billion in NVIDIA stock. The process of signing the deal will take approximately 18 months. During this time, NVIDIA must obtain approval from special regulatory authorities in the UK, European Union, US and China.

The British chip designer will continue to have its headquarters in Cambridge. There, NVIDIA plans to create a world-class artificial intelligence laboratory.

In an interview with Forbes, NVIDIA CEOJensen Huang said that the company's first priority following the acquisition will be to "introduce NVIDIA technology across ARM's extensive network." But this will have no impact on ARM's current licensing model.

“ARM’s business model is great.We will maintain our open licensing model and customer neutrality, serving customers in every industry around the world, and will further expand ARM's IP licensing portfolio with NVIDIA's world-leading GPUs and AI technologies,” added Huang.

In case you didn't know, ARMdevelops chips for processors used in many smartphones, including Apple and Samsung. It was founded in 1990. In July 2016, the manufacturer was acquired by the Japanese holding SoftBank. The amount of the deal was not disclosed at the time, but according to rumors, $32 billion was paid for it.

Source: NVIDIA (1,2), Bloomberg, Forbes

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