Nvidia buys SoftBank's arm for US$40B in biggest chip deal

NVIDIA rumored to pay $40 billion for ARM Holdings

He predicted big growth opportunities for Nvidia and Arm in the server CPU market, which is now dominated by Intel and Advanced Micro Devices.

All that is irrelevant, however, if SoftBank isn't allowed to flog the thing at all. Having succeeded in selling Nvidia's graphics chips to owners of data centers to speed up image recognition and language processing, Huang is looking to make sure his technology helps spread that to everything from self-driving vehicles to smart meters. "Since acquiring Arm, we have honored our commitments and invested heavily in people, technology and R&D, thereby expanding the business into new areas with high growth potential". Regulatory approval may take as long as 18 months before the transaction is completed and the deal needs sign-offs from U.K., China, the European Union and the USA, the companies said.In a move to placate Arm's powerful customers and defuse regulatory concerns, Nvidia said the U.K. company will "continue to operate its open-licensing model while maintaining the global customer neutrality that has been foundational to its success".

And the BBC reports that two of Arm's co-founders have voiced concerns about a US-controlled company becoming caught up in a USA trade clash with China.

SoftBank will retain a 10% stake in Nvidia. (SBG) and the SoftBank Vision Fund (together, "SoftBank") in a transaction valued at $40 billion.

"We are joining arms with Arm to create the leading computing company for the age of AI", NVIDIA founder and CEO Jensen Huang wrote in an open letter to employees last night.

But experts say one risk Nvidia faces is that the takeover could encourage ARM's wider client list to shift focus to a rival type of chip technology, which lags behind in terms of adoption but has the benefit of not being controlled by one company. The team includes ARM CEO Simon Segars and Chief Financial Officer Yoshimitsu Goto.

If the company's British character and open business model could not be protected, it would be better for Mr. Johnson to back a flotation on the London Stock Exchange, Mr. Hauser said.

"Nvidia is the flawless partner for Arm", said Masayoshi Son, SoftBank chairman and CEO.

"China remains an important part of our business and we intend to continue working closely with our JV like we have done and continue to explore the Chinese ecosystem".

"We have really exciting plans for United Kingdom and Cambridge". Expect to see opportunist political types publicly drop generic protectionist soundbites, which the companies concerned clearly anticipate. In this case Intel has historically placated regulators by licensing the tech to AMD, thus generating competition in the CPU space, so maybe there's a compromise in that direction.

"NVIDIA is the ideal partner for Arm", said Masayoshi Son, chairman and CEO of SoftBank.

To clear regulatory concerns Huang said Nvidia and Arm were "completely complementary" to each other.



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