Why Nvidia Bought Arm

Nvidia will expand arm s r d presence in cambridge uk by establishing a world class ai research and education center and building an arm nvidia powered ai supercomputer for groundbreaking research.

Why nvidia bought arm. Its gpus are market leaders in this space with the global top four cloud services using nvidia gpus for 97 of their accelerators. Nvidia will invest in a state of the art arm. The deal will include 21 5. It s easy to see why nvidia is interested in arm.

Uk based computer chip designer arm holdings is being sold to the american graphics chip specialist nvidia. Chipmaker nvidia has agreed to buy arm holdings a designer of chips for mobile phones from softbank in a deal worth 40 billion the companies announced sunday. Nvidia just might buy its way into becoming the most important silicon producer in the world. Unites nvidia s leadership in artificial intelligence with arm s vast computing ecosystem to drive innovation for all customers.

But the reasons for nvidia to pick them up are obviously different. Sep 15 2020 5 minute read. Nvidia intends to finance the cash portion of the transaction with balance sheet cash. Author of the article.

Nvidia will also issue 1 5 billion in equity to arm employees. A good deal for nvidia. Why nvidia s blockbuster deal to buy arm is sending shockwaves through the chip industry. None of arm s major customers has publicly backed the us 40 billion deal.

Nvidia will build on arm s r d presence in the u k establishing a new global center of excellence in ai research at arm s cambridge campus. Additionally softbank may receive up to 5 billion in cash or common stock under an earn out construct subject to satisfaction of specific financial performance targets by arm. Nvidia will initially pay softbank 12 billion in cash and 21 5 billion in nvidia shares with further cash or stock up to 5 billion to be paid going forward under an earn out. When softbank bought arm i think it was seen as purely a move by the conglomerate to diversify their tech portfolio.

Nvidia s focus has been on ai in the cloud.