Although it was previously stated in the earnings conferencenot yetTalks with Softbank about acquiring Arm, but NVIDIA is earlierFinally confirmedWill acquire Arm for $400 billion in cash and NVIDIA stock.
According to a statement from both parties, the transaction will involve NVIDIA paying $120 billion in cash and $215 billion in NVIDIA stock, with $20 billion in cash due at signing. Softbank will also receive an additional $50 billion in cash or stock if Arm's business meets certain growth targets, and will also provide NVIDIA stock worth $15 billion to Arm employees.
After this transaction, Softbank will retain less than 10% of Arm's equity, but the entire transaction still needs to be approved by regulators in the United States, the European Union, the United Kingdom and China, so it is expected that the actual completion of the transaction will take one and a half years.
NVIDIA also stated that it will maintain Arm's neutrality and continue collaborating with various industry partners based on its existing business model. NVIDIA also plans to incorporate its GPU technology into Arm products. NVIDIA emphasized that the transaction will strengthen both companies' technological development and will not diminish Arm's market presence. Arm will maintain its headquarters in the UK after the transaction and will further promote artificial intelligence research, as well as the development of robotics and automation applications.
In addition, NVIDIA also emphasized that the acquisition of Arm will not affect Arm's cooperation with existing customers, and also emphasized that a lot of preparations have been made for this acquisition.
NVIDIA's current development focuses on GPU-accelerated computing applications. In recent years, it has further integrated with the Arm architecture to promote artificial intelligence applications in servers and edge computing, as well as the development of autonomous driving technology. Therefore, the acquisition of Arm will not affect the development of the existing mobile phone industry.
