Graphics card company Nvidia has closed a $40 billion deal and acquires ARM, a chip designer company based in the UK.
The $40B deal is as follows- Nvidia will be handing out $12B in cash and $2B when it signs the deal. ARM employees will share about $1.5B of Nvidia stock and $21.5B in stock to SoftBank.
CEO and founder of Nvidia Jensen Huang iterates that AI is currently the most powerful force of technology and has created a new computing wave. The acquisition of ARM allows the company to be in position for AI domination. Softbank CEO and chairman Masayoshi Son echoes the sentiment, saying that Nvidia is the ‘perfect partner’ for ARM.
The agreement is all but written; however, there are some regulatory hurdles the three companies must go through to make it final. Huang mentioned that ARM headquarters will still be based in the UK but will be expanded to attract researchers across the globe.