Nvidia to buy $40 Billion Chipmaker Arm from SoftBank in $12 Million cash

Softbank group said that it has agreed to sell chip designer Arm to Nvidia in a $40 billion deal, this deal is set to reshape the semiconductor landscape. Nvidia will pay SoftBank $21.5billion in shares and $12 million in cash, including $2 billon on signing.

Softbank group said that it has agreed to sell chip designer Arm to Nvidia in a $40 billion deal, this deal is set to reshape the semiconductor landscape. Nvidia will pay SoftBank $21.5billion in shares and $12 million in cash, including $2 billon on signing.

The deal puts a vital supplier to Apple and others across the industry under the control of a single player. Nvidia is the leading maker of GPU’s which Arm also designs, but other than its Tegra line of mobile chipsets used in devices like the Nintendo switch.

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Nvidia CEO said he will retain Arm’s neutral licensing model and expand it y licensing out Nvidia intellectual property for the first time. Nvidia will license its flagship graphical processor unit through Arm’s network of silicon partners.

Softbank could also be paid an additional $5 billion in cash or shares depending on the chip designer’s business performance, with Arm employees to be paid $1.5 billion in Nvidia shares

The deal is subject to regulatory approvals including in Britain, United States and China and is expected to close in March 2022.