Nvidia is officially buying Arm for $40 billion

Arm co-founder slams the deal as an "absolute disaster for Cambridge, the UK and Europe"

Nvidia logo on the side of a building

Nvidia and Softbank have agreed a $40 billion (£30 billion) deal for UK-based chip manufacturer Arm. 

Under the terms of the transaction, Nvidia will pay SoftBank a total of $21.5 billion in common stock and $12 billion in cash, which includes $2 billion payable at signing. 

However, the acquisition has been met with some backlash within the industry, and also within the UK's government, over fears Nvidia will move Arm's operations out of Cambridge. Japanese investment group Softbank took over the chipmaker in 2016, and the government at the time mandated that Arm remains in the UK.

On Friday, Ed Miliband called for similar "legally binding assurances" that UK jobs would be protected should Nvidia acquire the company.

Following the announcement of the deal, Nvidia CEO Jensen Huang said that his company "intends to retain the name and strong brand identity" of Arm within the UK and also expand its base in Cambridge. 

"Nvidia will build on Arm's R&D presence in the UK, establishing a new global centre of excellence in AI research at Arm's Cambridge campus," Huang said in a statement.

"Nvidia will invest in a state-of-the-art, Arm-powered AI supercomputer, training facilities for developers and a startup incubator, which will attract world-class research talent and create a platform for innovation and industry partnerships in fields such as healthcare, robotics and self-driving cars."

The acquisition of Arm strengthens Nvidia's position in the chip market, particularly against Intel. Reports claim that Arm CPUs will help Nvidia company gain a stronger foothold in the data centre industry

Arm co-founder Hermann Hauser has slammed the acquisition as "an absolute disaster for Cambridge, the UK and Europe", suggesting that it is anti-competitive. 

"Nvidia will destroy ARM's business model," Hauser told BBC Radio 4. "The business model of Arm is being the Switzerland of the semi-conductor industry, of dealing with over 500 licensees, most of which are competitors of Nvidia." 

Featured Resources

Unleashing the power of AI initiatives with the right infrastructure

What key infrastructure requirements are needed to implement AI effectively?

Download now

Achieve today. Plan tomorrow. Making the hybrid multi-cloud journey

A Veritas webinar on implementing a hybrid multi-cloud strategy

Download now

A buyer’s guide for cloud-based phone solutions

Finding the right phone system for your modern business

Download now

The workers' experience report

How technology can spark motivation, enhance productivity and strengthen security

Download now

Recommended

What is a GPU?
Hardware

What is a GPU?

20 Jan 2021
AMAX workstations gain Nvidia RTX A6000 GPUs
virtual desktop

AMAX workstations gain Nvidia RTX A6000 GPUs

16 Dec 2020
The IT Pro Podcast Profile: What’s cooking with Nvidia?
components

The IT Pro Podcast Profile: What’s cooking with Nvidia?

6 Nov 2020
Should we stop selling the crown jewels of tech?
mergers and acquisitions

Should we stop selling the crown jewels of tech?

10 Oct 2020

Most Popular

How to move Windows 10 from your old hard drive to SSD
operating systems

How to move Windows 10 from your old hard drive to SSD

21 Jan 2021
Hackers are actively exploiting three Apple iOS flaws
exploits

Hackers are actively exploiting three Apple iOS flaws

27 Jan 2021
16 ways to speed up your laptop
Laptops

16 ways to speed up your laptop

26 Jan 2021