NVIDIA Agrees to $40 Billion Arm Acquisition to Dominate AI Computing
NVIDIA plans to purchase Arm from SoftBank for $40 billion to combine top AI technology with the world's largest computing ecosystem. The deal promises to expand Arm's open-licensing model and boost global research efforts.
NVIDIA and SoftBank Group Corp. announce a definitive agreement where NVIDIA acquires Arm Limited for $40 billion in a combination of cash and shares. This massive deal unites NVIDIA's leading artificial intelligence computing platform with Arm's vast global ecosystem. The transaction immediately boosts NVIDIA's non-GAAP gross margin and earnings per share.
The newly combined company aims to become the premier computing company for the age of AI. NVIDIA CEO Jensen Huang states that AI acts as the most powerful technology force today and drives a new wave of computing. By merging NVIDIA's GPU and AI capabilities with Arm's CPU ecosystem, the companies plan to advance technology across cloud computing, smartphones, self-driving cars, robotics, and edge IoT devices.
NVIDIA pledges to maintain Arm's open-licensing model and customer neutrality while expanding Arm's IP portfolio with NVIDIA technology. Arm stays headquartered in Cambridge, UK, where NVIDIA plans to establish a world-class AI research and education center. Additionally, NVIDIA builds an Arm/NVIDIA-powered AI supercomputer at this site to support groundbreaking developments, while SoftBank retains an ownership stake of under 10 percent in NVIDIA.