Nvidia Corp. is officially acquiring Arm Limited from the SoftBank group for $40 billion. Artificial intelligence is the highlight of this multi-billion dollar deal. Arm provides the architecture for processors of companies like Apple and Qualcomm.
In a press release, Nvidia also assured that Arm would “continue to operate its open-licensing model while maintaining global customer neutrality.” The deal is expected to take about 18 months to complete, pertaining to acquiring regulatory approvals from the U.K., China, the European Union, and the U.S.
The transaction details include Nvidia paying SoftBank $21.5 billion in common stocks and $12 billion in cash, including $2 billion payable at signing. SoftBank may get an additional $5 billion, pertaining to certain financial targets. Nvidia will also issue $1.5 billion in equity to Arm employees.
Nvidia and Arm join hands for AI
Jensen Huang, founder and CEO of Nvidia, stated, “Uniting NVIDIA’s A.I. computing capabilities with the vast ecosystem of Arm’s CPU” to be of major importance for both companies. He talked about advancements in computing across devices and expanding “A.I. computing to every corner of the globe.”
Simon Segars, CEO of Arm added that the companies share a “vision and passion for ubiquitous, energy-efficient computing,” which will help address issues like climate change, agriculture, and education.
Will Stay in the U.K.
To make the acquisition easy for the clients, Nvidia and Arm have talked about a couple of measures. Arm will continue to operate its open-licensing model. The joint statement also said that Arm’s intellectual rights would remain registered in the U.K.
Further, Nvidia will establish a new ‘global center of excellence in A.I. research’ at Arm’s Cambridge campus. The company will also invest in an Arm-powered AI supercomputer, a training facility for developers, and a startup incubator.