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Deal
Nvidia Corp is close to a deal to buy SoftBank Group Corp’s British chip designer Arm Holdings for more than US $ 40bn (£ 31.26bn) in a deal that would create a giant in the chip industry, according to two. people familiar with the matter. .
FILE PHOTO: The Nvidia booth is displayed at the E3 2017 Electronic Entertainment Expo in Los Angeles, California, USA, June 13, 2017. REUTERS / Mike Blake
REUTERS: Nvidia Corp is close to a deal to buy British chip designer Arm Holdings from SoftBank Group Corp for more than US $ 40 billion (£ 31.26 billion) in a deal that would create a giant in the chip industry, according to two people familiar with the matter.
A cash and stock deal for Arm could be announced next week, the sources said.
Nvidia is known for its graphics chips that power video games, but it has developed other markets including artificial intelligence, autonomous cars, and data centers.
Arm supplies chip technology for virtually all mobile devices, such as phones and tablets, but is also expanding to automotive processors, data center services, and other devices.
The British company does not make chips. Instead, it licenses the underlying technology so that others can chip it. She has previously collaborated with Nvidia.
Last year, Nvidia said it would make its chips run on Arm processors to build supercomputers, deepening its push toward systems used to model both climate change predictions and nuclear weapons.
SoftBank acquired Arm for $ 32 billion in 2016, its largest purchase, in part to expand into Internet of Things technology, which connects everyday devices, from road signs to refrigerators to the Internet.
The terms would mark a major victory for the Japanese company that has struggled to fuel business growth, according to the Wall Street Journal, which reported on the deal previously.
Nvidia declined to comment. SoftBank and Arm did not respond to Reuters requests for comment.
(Report by Shubham Kalia in Bengaluru and Greg Roumeliotis in New York; Additional report by Ismail Shakil in Bengaluru; edited by Chizu Nomiyama and Diane Craft)
