[Update: Nvidia might be relinquishing their offer for Arm due to the FTC.]
After announcing its next series of graphics cards, Nvidia has made another major announcement. The company is purchasing the British semiconductor company, Arm, for $40 billion. Nvidia acquired Arm from SoftBank, which paid $31 billion for it back in 2016.
In a statement released by Nvidia, the company said buying Arm will help them become the “premier computing company for the age of artificial intelligence, accelerating innovation while expanding into large, high-growth markets.”
Although SoftBank has sold Arm, they are also taking an ownership stake in Nvidia which will be “under 10 percent.”
AI is the most powerful technology force of our time and has launched a new wave of computing,” Nvidia founder and CEO Jensen Huang said. “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.”
The team at Arm will stay at their current headquarters in Cambridge, but with the new investment, it will be expanded. Offices and a “world-class AI research facility” will be built to support the development of new technology for health care, life sciences, robotics, and self-driving cars. Arm also plans to build a “state-of-the-art AI supercomputer” that uses Arm CPUs.
“Arm and Nvidia share a vision and passion that ubiquitous, energy-efficient computing will help address the world’s most pressing issues from climate change to healthcare, from agriculture to education,” Arm CEO Simon Segars said in a statement. “Delivering on this vision requires new approaches to hardware and software and a long-term commitment to research and development. By bringing together the technical strengths of our two companies we can accelerate our progress and create new solutions that will enable a global ecosystem of innovators. My management team and I are excited to be joining Nvidia so we can write this next chapter together.”