Nvidia purchases Arm for $40 billion

nvidia purchasing arm for 40 billion rect

This week it was reported that Nvidia was eyeing to finalize a deal to purchase Softbank’s Arm for $40 billion, and today, the deal was made official. As Bloomberg reports:

Nvidia Corp. said it agreed to buy SoftBank Group Corp.’s chip division Arm Ltd. for $40 billion, taking control of some of the most widely used technology in electronics in the semiconductor industry’s largest-ever deal.

Nvidia will pay $21.5 billion in stock and $12 billion in cash for the U.K. based-chip designer, including a $2 billion payment at signing. Softbank may recieve an additional $5 billion cash or stock if Arm’s performance meets certain targets, the companies said Sunday in a statement. An additional $1.5 billion will be paid to Arm employees in Nvidia stock.

According to Nvidia, Arm will remain independent and continue to operate as normal with its current customers, which includes Apple saying “{ARM will} continue to operate its open-licensing model while maintaining the global customer neutrality that has been foundational to its success.” As part of the deal, Nvidia will add its own technologies to Arm’s lineup and licenses.

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Sami
Sami started falling in love with Apple in 2010 with the iPhone 4S. As a registered developer, he deeply admires the world of Apple. Sami is an aspiring journalist, writer, and actor. He also has devoted his life to sharing his passion and knowledge with others around the world.