NVIDIA announced a definitive agreement under which NVIDIA will acquire Arm Limited from SBG and the SoftBank Vision Fund. According to the announcement, NVIDIA will expand Arm’s R&D presence in Cambridge, UK, by establishing an AI research and education center. NVIDIA will also build an Arm/NVIDIA-powered AI supercomputer for research. NVIDIA also stated that it will continue Arm’s open-licensing model and customer neutrality and expand Arm’s IP licensing portfolio.
Arm/NVIDIA-powered AI supercomputer
The acquisition will combine NVIDIA’s leading AI computing platform with Arm’s vast ecosystem to create the premier computing company for the age of artificial intelligence, accelerating innovation. The transaction is expected to be immediately accretive to NVIDIA’s non-GAAP gross margin and non-GAAP earnings per share. NVIDIA also stated that consideration of $40 billion to be met through a combination of NVIDIA shares and cash. Jensen Huang, founder and CEO of NVIDIA said,
“AI is the most powerful technology force of our time and has launched a new wave of computing. In the years ahead, trillions of computers running AI will create a new internet-of-things that is thousands of times larger than today’s internet-of-people. Our combination will create a company fabulously positioned for the age of AI. Simon Segars and his team at Arm have built an extraordinary company that is contributing to nearly every technology market in the world. Uniting NVIDIA’s AI computing capabilities with the vast ecosystem of Arm’s CPU, we can advance computing from the cloud, smartphones, PCs, self-driving cars and robotics, to edge IoT, and expand AI computing to every corner of the globe.
This combination has tremendous benefits for both companies, our customers, and the industry. For Arm’s ecosystem, the combination will turbocharge Arm’s R&D capacity and expand its IP portfolio with NVIDIA’s world-leading GPU and AI technology. Arm will remain headquartered in Cambridge. We will expand on this great site and build a world-class AI research facility, supporting developments in healthcare, life sciences, robotics, self-driving cars and other fields. And, to attract researchers and scientists from the U.K. and around the world to conduct groundbreaking work, NVIDIA will build a state-of-the-art AI supercomputer, powered by Arm CPUs. Arm Cambridge will be a world-class technology center.”
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