Nvidia buys ARM for $ 40 billion

Nvidia buys ARM

It's official: Nvidia buys ARM with a $ 40 billion deal. The agreement between Nvidia and SoftBank Group was signed and announced on September 14th. A change that takes place shortly after Apple's announcement of the abandonment of Intel in favor of ARM , and which will therefore also impact the Cupertino company.

A very important acquisition that will also have consequences in the hardware world and that will revolutionize not only the chip market, but also that of smartphones.

A billion dollar business

The purchase was announced but was nevertheless met with great surprise: Nvidia bought ARM (part in "cash", part in shares), while leaving a small part (less than 10%) to SoftBank Group , the company that had acquired ARM just a few years ago. The target? Investing in artificial intelligence , enhancing its technologies and accelerating its innovation and expansion in various markets.

In fact, as the CEO of Nvidia declares:

Artificial intelligence is the most powerful technological force of our time and has initiated a new wave of IT services. In the coming years, billions of computers running AI capabilities will create a new Internet of Things, thousands of times larger than today's Internet of People. Our combination will create a company fantastically positioned for the age of AI "

By combining computational capabilities with the ecosystem of ARM CPUs we can advance the areas of cloud computing, smartphones, self-driving machines and the Edge IoT, ” continues Jensen Huang. A union that, according to him, will speed up progress, benefiting both companies, industry and customers .

Jensen Huang CEO of Nvidia. Credits: MANDEL NGAN / AFP / Getty Images
Jensen Huang CEO of Nvidia. Credits: MANDEL NGAN / AFP / Getty Images

The CEO of SoftBank Group is also confident and claims that Nvidia is the “perfect partner” for ARM, which will be able to provide them with the right opportunities to expand; in fact, the two companies have always operated in market areas where the other was not successful. The first major project of the newly formed union will be a supercomputer based on ARM CPU and Nvidia GPU .

Nvidia buys ARM: what will change?

Jensen Huang has already confirmed that he has no intention of revolutionizing the ARM world, and that he will keep the same policies of the company . Hence, ARM will keep its open licensing model and neutrality with customers. ARM partners will also receive offers and benefits from Nvidia.

No change also for the headquarters of the English company: it will remain in Cambridge and there will be created a research pole in the field of artificial intelligence. The goal is to make the site a world center for development and technology.

Simon Segars, CEO of ARM. Credits: David Fitzgerald / Web Summit
Simon Segars, CEO of ARM. Credits: David Fitzgerald / Web Summit

Nvidia then learned to become a "complete" company, acquiring the CPU design, coming on a par with names like Intel and AMD . The fields of robotics, automotive and gaming also open up for the company. In the latter we already find the collaboration with Nintendo, but together with the ARM CPUs it will be able to offer services for many more devices than the current ones.

The CEO of ARM is also very confident in the new collaboration , also due to the positive consequences it will have in the world and in modern problems. “ ARM and Nvidia share a vision and a passion that widespread and efficient computing will help solve the world's most pressing problems , such as climate change, healthcare, agriculture and education, ” says Simon Segars. “ Pursuing this goal requires new hardware and software approaches and a long-term commitment to research and development. By joining the forces of the two companies we can accelerate progress and create new solutions that will create a global ecosystem of innovators ”.

The Nvidia article buys ARM for $ 40 billion comes from TechCuE .