$40 Billion Seems Like a Good Deal

$40 Billion Seems Like a Good Deal

Nvidia Corp. said it agreed to buy SoftBank Group Corp.'s chip division Arm Ltd. for US$40 billion, taking control of some of the most widely used technology in electronics in the semiconductor industry's largest-ever deal.Nvidia will pay US$21.5 billion in stock and US$12 billion in cash for the United Kingdom based-chip designer, including a US$2 billion payment at signing.

"AI is the most powerful technology force of our time and has launched a new wave of computing", Jensen Huang, NVIDIA's CEO, said in a statement.

As Ars Technica points out, Arm itself doesn't produce its own chips - it licenses its technology to other companies based on its Arm CPU architecture.

In April, Nvidia completed the acquisition of Israel's Mellanox Technologies Ltd. for $7 billion.

Tudor Brown, Arm's former chief executive, said the deal "just doesn't work" if Arm was "owned by one of these heavyweights".

The concern is that there would be a conflict of interest since ARM's clients would become dependent on a business with which many also compete for sales.

If SOCs were able to utilize NVIDIA GPUs, it could also potentially boost Windows 10 on ARM PCs. The remaining funds will be split up between a $2 billion initial signing payment, an additional $5 billion if Arm performs to a set level, and another $1.5 billion to Arm employees, made up of NVIDIA stock.

Kelly Clarkson Calls Divorce With Brandon Blackstock the 'Worst Thing Ever'
Kids involved: Kelly Clarkson says she wont talk about her divorce for the sake of her children. "I mean, it's no secret". Just last week, Kelly addressed her divorce and explained why she doesn't want to go into detail about it.

In an interview with Reuters on Monday morning, Hauser said the deal would lessen competition in the industry, undermine ARM's neutrality, and risk operations being moved overseas. But that's even more true than I had imagined: NVIDIA won over critics by pledging to keep Arm as a separate company with open licensing, and it will honor SoftBank's promises to keep Arm in Cambridge, England, it's long-time home.

Jean-Luc started CNX Software in 2010 as a part-time endeavor, before quitting his job as a software engineering manager, and starting to write daily news, and reviews full time later in 2011. Arm's tech powers mobile device processors for several companies including Samsung, Apple, and Qualcomm. In the coming years Billions of computers with AI will create a new Internet of Things that is a thousand times bigger than today's Internet of People.

Nvidia CEO Jensen Huang said the USA company still plans to keep Arm based at its headquarters in Cambridge, England, where it will also build an artificial intelligence research center. SoftBank, the Japanese telecom company that bought Arm for $US31 ($43) billion in 2016, has been pummelled by the pandemic, and selling Arm is believed to be a bid to raise some moolah to offset that.

"The deal would include 47 percent of Arm China, but what does that mean anymore?" said Intralink's Randall. The company's business centers on designing chips and licensing the intellectual property to customers, rather than chip manufacturing, for which it relies on partners.

We expect Nvidia to unveil plans for how it will deal with regulatory concerns and make certain ARM's existing customers retain uninterrupted access to IP and do not fear being blocked out of future access to processor designs.

Amazon is among companies that are already betting on the tech.

Related Articles

  • Hints of life on Venus

    Hints of life on Venus

    Artist's impression of Venus, with an inset showing a representation of the phosphine molecules detected in the high cloud decks. Bacteria in the clouds on Earth last about a week, but on Venus, clouds are a permanent feature of the planet's atmosphere.
    OnePlus 8T Specs Sheet Leaks Alongside New Renders

    OnePlus 8T Specs Sheet Leaks Alongside New Renders

    The leak claims that the OnePlus 8T will feature Snapdragon 865, and not Qualcomm's latest Snapdragon 865 +, which is rather odd. Here is the new information about the device that had been confirmed and certified by the Bureau of Indian Standards (BIS).
    Coronavirus vaccine won't be available for all before 2024-end: Poonawalla

    Coronavirus vaccine won't be available for all before 2024-end: Poonawalla

    The announcement follows United States president Donald Trump publicly putting pressure on the FDA to fast track a vaccine. If the FDA approves the vaccine, the company is prepared to distribute "hundreds of thousands of doses", he said.
  • Allegheny County posts 142 new covid cases over past 2 days

    Oneida County has seen a total of 2,337 confirmed positive cases for the virus, which causes the respiratory illness Covid-19. People who test positive for Covid-19 will only have to self-isolate for 10 days after a change from the 14-day rule.
    Meghan Markle Pitching Netflix Documentary on BLM Founder

    Meghan Markle Pitching Netflix Documentary on BLM Founder

    The couple have also paid back the estimated £2.4 million renovation costs for Frogmore Cottage in Windsor . The former " Suits " star looked stunning in a low ponytail, white blazer and brown top.
    US halts imports from China's Uighur region for forced labor

    US halts imports from China's Uighur region for forced labor

    Nevertheless, the issue has become a source of friction between the USA and China amid tensions that have escalated under President Donald Trump.
  • Smoke from west coast wildfires now stretching into GTA

    Smoke from west coast wildfires now stretching into GTA

    Twenty-seven of the at least 35 people killed by the blazes since the beginning of summer died last week. He recently called the threat of climate change "undeniable" and "existential".
    Zack Snyder's Justice League Teases A Part Of JunkieXL's Thunderous Score

    Zack Snyder's Justice League Teases A Part Of JunkieXL's Thunderous Score

    Recently, Iris West actress Kiersey Clemons also shared her support for Fisher on social media. Representatives for Momoa and Warner Bros. did not immediately respond to requests to comment.
    Oxford University and AstraZeneca resume COVID-19 vaccine trial

    Oxford University and AstraZeneca resume COVID-19 vaccine trial

    The voluntary pause was triggered on September 6 after a standard review identified an adverse reaction in one subject. AstraZeneca and the University of Oxford have not disclosed any medical information on the nature of the illness.
  • #CancelNetflix Trends on Twitter after Controversial Film Cuties Airs

    #CancelNetflix Trends on Twitter after Controversial Film Cuties Airs

    The hashtag #CancelNetflix became a top trending topic on social media after the French film Cuties released on Netflix. The film reportedly does feature young girls in the crew performing indelicate dance moves.
    YouTube Shorts Beta Announced as a Rival to TikTok in India

    YouTube Shorts Beta Announced as a Rival to TikTok in India

    YouTube isn't the only tech firm that has launched a TikTok rival - Facebook rolled out its own Instagram Reels in early August. Google isn't the only company taking on TikTok while it struggles to fight being shutdown in the United States.
    India's economy to contract by 9% in FY21: ADB

    India's economy to contract by 9% in FY21: ADB

    The world's second largest economy is expected to rebound strongly to 7.7% in 2021, the ADB said. Bangladesh will grow 5.2 percent, Bhutan 2.3 percent and Nepal 2.3 percent.