NVIDIA has been making big news lately. The company was in top headlines of every top technology outlet after the release of their Ampere cards. It looked like this year was going to be a big one for NVIDIA. The new GPUs showed a lot of potential and we were hoping for more news once they went on sale. However, it looks like NVIDIA isn’t just focusing on GPUs this time. In a recent tweet, the company revealed that they will soon acquire ARM.
ARM is a British semiconductor and software design company. It is well known for the designs of our smartphone chipset architectures. The company is also working with Apple in making its own silicon. We all know Apple will be ditching Intel for its own chips which are ARM-based. NVIDIA shared a tweet today detailing that the company intends to buy ARM and what future plans it holds.
The tweet said that NVIDIA will be buying UK based tech company for $40 Billion. Also that they intend to build a leading company in AI for the modern age. You can check out the tweet below.
NVIDIA to Acquire Arm for $40 Billion, Creating World’s Premier Computing Company for the Age of AI. https://t.co/Pj0lR8W03u pic.twitter.com/6fJ9zltWz8
— NVIDIA (@nvidia) September 13, 2020
This is not the first time NVIDIA is working on the applications of AI. We saw what NVIDIA has achieved with DLSS and video cleaning techniques in their recent event. With ARM AND NVIDIA joining hands in this broad field we can definitely see some new developments in the near future.
With this acquisition, the two companies will be able to share their resources as well as designs for better development. NVIDIA plans to expand R&D presence in Cambridge, UK, by establishing a world-class AI research and education center. They will also build an Arm/NVIDIA-powered AI supercomputer for groundbreaking research. In addition, NVIDIA will continue Arm’s open-licensing model and customer neutrality.
The Acquisition:
NVIDIA and SoftBank Group Corp. (SBG) the prior owner of ARM today announced their agreement after which NVIDIA will acquire Arm Limited from SBG and the SoftBank Vision Fund for about 40 billion dollars. The transaction in addition to technological benefits will also increase the value of NVIDIA’s non-GAAP gross margin and non-GAAP earnings per share.
As explained earlier this merger brings together NVIDIA’s leading AI computing platform with Arm’s vast ecosystem. It will make a world-leading computing company for the age of artificial intelligence that lies ahead of us. It will accelerate innovation from both the companies while they expand into large, high-growth markets.
In addition, SoftBank will remain connected to Arm even after this decision through its ownership stake in NVIDIA, which we expect to be under 10 percent. Furthermore, Arm will continue to operate its open-licensing model after becoming a part of NVIDIA, while maintaining the global customer neutrality. Arm partners will also benefit from both companies’ offerings, which means NVIDIA’s numerous innovations will also be on the table for them.
NVIDIA intends to keep the name and strong brand identity of Arm after the acquisition. They also plan to expand their base in Cambridge. Arm’s intellectual property will remain registered in the U.K. In addition, SoftBank and Arm are fully committed to satisfying their promises which they made back in 2016 when they acquired ARM.
Jensen Huang, founder and CEO of NVIDIA said that “AI is the most powerful technology force of our time and has launched a new wave of computing”. He further added that “Our( NVIDIA and ARM) combination will create a company fabulously positioned for the age of AI”.