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

Defeating ransomware with unified security from WatchGuard

How SMBs can defend against the onslaught of ransomware attacks

Free download

The IT expert’s guide to AI and content management

How artificial intelligence and machine learning could be critical to your business

Free download

The path to CX excellence

Four stages to thrive in the experience economy

Free download

Becoming an experience-based business

Your blueprint for a strong digital foundation

Free download

Recommended

Nvidia GeForce RTX 3090 review: Caught between two worlds
components

Nvidia GeForce RTX 3090 review: Caught between two worlds

9 Sep 2021
Nvidia GeForce RTX 3080 review: A force to be reckoned with
components

Nvidia GeForce RTX 3080 review: A force to be reckoned with

7 Sep 2021
Nvidia GeForce RTX 3060 review: Big things in a small package
components

Nvidia GeForce RTX 3060 review: Big things in a small package

3 Sep 2021
7 most powerful computers of all time
Hardware

7 most powerful computers of all time

26 Aug 2021

Most Popular

What are the pros and cons of AI?
machine learning

What are the pros and cons of AI?

8 Sep 2021
Zoom: From pandemic upstart to hybrid work giant
video conferencing

Zoom: From pandemic upstart to hybrid work giant

14 Sep 2021
Citrix mulling potential sale after tumultuous 2021
mergers and acquisitions

Citrix mulling potential sale after tumultuous 2021

15 Sep 2021