As per reports from the WSJ, NVIDIA is in the final stages of acquiring British chipmaker ARM for approximately $40 billion. Earlier Softbank, its parent company was demanding around $52 billion from NVIDIA for the same. Masayoshi Son, the CEO of Softbank has assembled a team of executives to mediate the deal, including the ARM C.E.O. Mr. Simon Segars, Vision Fund chief Mr. Rajeev Mishra, Arm CFO Yoshimitsu Goto, and Akshay Naheta.
The ARM-NVIDIA deal has been in progress for a while now and ought to reach its conclusion in the next couple of weeks. If everything goes as planned, NVIDIA will pay Softbank between $40 to $45 billion for the acquisition, in both stocks and cash. At the end of Q1 2020, NVIDIA had around $15 in cash which means the majority of the payment will be in the form of stocks.
NVIDIA is one of the most highly valued chipmakers in terms of market cap thanks to its growing influence in the Data Center market and leadership in AI and machine learning.
If NVIDIA manages to get hold of ARM, it’ll have its own CPU and GPU divisions similar to rivals AMD and Intel. The only difference will be that ARM chips are in use by the majority of smartphone manufacturers while Intel and AMD primarily dabble in the x86 market (PC and server).
Considering the recent rise in the number of RISC and RISC-V processors in the Data Center market, it wouldn’t be surprising if NVIDIA comes up with its own ARM-based CPU paired with a Telsa GPU accelerator for neural network and machine learning workloads.
However, the relatively open nature of the ARM eco-system means that many present partners will likely look towards alternate solutions for powering their devices. After all, NVIDIA isn’t known for Open Source technologies.