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There is a huge transaction going on in the global IT market: Nvidia’s Americans announced on Monday that they will buy the British microprocessor maker Arm for $ 40 billion in cash and shares, under certain conditions.
Japanese conglomerate Softbank, which now owns Arm, will receive $ 21.5 billion worth of Nvidia shares and $ 12 billion in cash. The Japanese will also receive another $ 5 billion in cash or stock if Arm achieves some financial results. In addition, Arm Holdings employees will receive $ 1.5 billion worth of Nvidia shares.
Important for the IT market is that Nvidia is now saying that it will continue with the Arm model of open license and client neutrality and that it will expand the portfolio of the British company with Nvidia technologies. Until now, the Arm architecture was used, under license, by other semiconductor manufacturers, including Nvidia, Intel, AMD, Qualcomm.
At the same time, Nvidia promises to open a research and education center in the field of artificial intelligence at Arm’s headquarters in Cambridge, UK, and will build an artificial intelligence supercomputer for research purposes.
Softbank bought the British company four years ago for $ 32 billion, according to the WSJ.
The Arm sale is a good move for Softbank, after investments that have proven weak so far, in Uber and WeWork, Venturebeat says.
Interest in Arm Holdings has grown especially after, in June 2020, Apple announced that it intends to replace Intel processors with Arm, in some computer models that it will manufacture.
In fact, Arm (Advanced RISC Machines) was founded in November 1990 as a joint venture of Apple, Acorn Computers, and VLSI Technology.
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