Nvidia to acquire Arm for US$40 billion

Nvidia and SoftBank Group (SBG) have announced a definitive agreement under which the former will acquire Arm from the latter and the SoftBank Vision Fund in a transaction valued at US$40 billion.

The combination brings together Nvidia's AI computing platform with Arm's ecosystem to create a computing company for the age of artificial intelligence, and SoftBank will remain committed to Arm's long-term success through its ownership stake in Nvidia, expected to be under 10%.

"AI is the most powerful technology force of our time and has launched a new wave of computing," said Jensen Huang, founder and CEO of Nvidia. "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."

"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," Huang said.

Masayoshi Son, chairman and CEO of SBG, described Nvidia as "the perfect partner for Arm."

"Since acquiring Arm, we have honored our commitments and invested heavily in people, technology and R&D, thereby expanding the business into new areas with high growth potential. Joining forces with a world leader in technology innovation creates new and exciting opportunities for Arm. This is a compelling combination that projects Arm, Cambridge and the UK to the forefront of some of the most exciting technological innovations of our time and is why SoftBank is excited to invest in Arm's long-term success as a major shareholder in Nvidia," said Son.

Commitment to Arm and the UK

As part of Nvidia, Arm will continue to operate its open-licensing model while maintaining the global customer neutrality that has been foundational to its success, with 180 billion chips shipped to-date by its licensees. Arm partners will also benefit from both companies' offerings, including NVIDIA's numerous innovations.

Following the closing of the transaction, Nvidia intends to retain the name and brand identity of Arm and expand its base in Cambridge. Arm's intellectual property will remain registered in the UK.

Nvidia will build on Arm's R&D presence in the UK, establishing a new global center of excellence in AI research at Arm's Cambridge campus. Nvidia will invest in a state-of-the-art, Arm-powered AI supercomputer, training facilities for developers and a startup incubator, which will attract research talent and create a platform for innovation and industry partnerships in fields such as healthcare, robotics and self-driving cars.