NVIDIA Acquires Arm for $40 Billion

Tsing

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Image: Arm



It’s official: NVIDIA has acquired Arm for $40 billion. In a press release published this evening, green team promised that it would maintain the semiconductor giant’s open-licensing model and neutrality, squelching one of the computing world’s biggest fears. NVIDIA CEO Jensen Huang has published a letter celebrating the acquisition and how Arm will help fuel his company’s AI ambitions.



“We are joining arms with Arm to create the leading computing company for the age of AI,” Huang wrote. “AI is the most powerful technology force of our time. Learning from data, AI supercomputers can write software no human can. Amazingly, AI software can perceive its environment, infer the best plan, and act intelligently. This new form of software will expand computing to every corner of the globe. Someday...
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Excellent move by Nvidia.
Congratulations, you are bigger than Intel now.
Not saying I like it, its bad for everyone else.
Don't get the lack of interest by everyone else. Its dumb.
I guess they think it will be cheaper to sue... No guarantees there though.
 
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Just wait for Nvidia to leverage some ai based stock trading engines able to process transactions in an instant through direct market manipulation and become the single most valuable entity in the world in a matter of weeks if not days. While the market seems complex to us an unfettered ai will be astounding to behold. Start with a sub penny stock artificially driving its value up and then flipping it before the market can correct to multiply the process. Checks for market trading panick will be the only thing that stops it. And if AI can figure out how to do that.... well I don't know how you think economic collapse works... but.. ...
 
Grimlakin said:
Just wait for Nvidia to leverage some ai based stock trading engines able to process transactions in an instant through direct market manipulation and become the single most valuable entity in the world in a matter of weeks if not days. While the market seems complex to us an unfettered ai will be astounding to behold. Start with a sub penny stock artificially driving its value up and then flipping it before the market can correct to multiply the process. Checks for market trading panick will be the only thing that stops it. And if AI can figure out how to do that.... well I don't know how you think economic collapse works... but.. ...
Click to expand...
AI is already being used for stock purposes and there really has been no benefit. Arbitrage sees to that.
 
Armenius said:
Open letter from Jensen on the acquisition of arm. Promises to maintain the open licensing model.
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Hahahaha hihihihihi hohohoho
'Promises' yeah, those in business are iron-clad with an escrow account. / S
 
I think the better question is what has ARM done to increase in value from $31b in 2016?
www.theverge.com

Nvidia is acquiring Arm for $40 billion

SoftBank bought Arm in 2016 for $31 billion
www.theverge.com www.theverge.com

9 billion increased worth in 4 years? Ehhhhhh I dunno. Nvidia must have really wanted it to pay top dollar for it. I'm sure this could not possibly come back later to bite them in the buttocks.
 
Burticus said:
I think the better question is what has ARM done to increase in value from $31b in 2016?
www.theverge.com

Nvidia is acquiring Arm for $40 billion

SoftBank bought Arm in 2016 for $31 billion
www.theverge.com www.theverge.com

9 billion increased worth in 4 years? Ehhhhhh I dunno. Nvidia must have really wanted it to pay top dollar for it. I'm sure this could not possibly come back later to bite them in the buttocks.
Click to expand...
As far as tech goes its all over priced. When no revenue companies like whatsapp sell for 20billion, I think Nvidia is getting a bargain (in relative fuzzy tech sector money math) for being at the helm of the second or the biggest ISA. Nvidia turns out to be the only one with a vision... Too bad for everyone else... Short-sighted all of them. That being said, I think its clear the government injects money in the tech sector as a matter of routine.. but thats just crazy conspiracy theories of mine.
 
Burticus said:
I think the better question is what has ARM done to increase in value from $31b in 2016?
www.theverge.com

Nvidia is acquiring Arm for $40 billion

SoftBank bought Arm in 2016 for $31 billion
www.theverge.com www.theverge.com

9 billion increased worth in 4 years? Ehhhhhh I dunno. Nvidia must have really wanted it to pay top dollar for it. I'm sure this could not possibly come back later to bite them in the buttocks.
Click to expand...
It should be interesting to see who's spotting them the $40 billion seeing as they don't really have any cash on hand. Maybe Jensen should start baking batches of credit cards.
 
Burticus said:
I think the better question is what has ARM done to increase in value from $31b in 2016?
www.theverge.com

Nvidia is acquiring Arm for $40 billion

SoftBank bought Arm in 2016 for $31 billion
www.theverge.com www.theverge.com

9 billion increased worth in 4 years? Ehhhhhh I dunno. Nvidia must have really wanted it to pay top dollar for it. I'm sure this could not possibly come back later to bite them in the buttocks.
Click to expand...

This is what I'm thinking. $40B is a very expensive ARM license. I know they are very bullish on AI / Datacenter, but ARM hadn't exactly made huge inroads with it yet, and apart from GPUs, neither has nVidia. nVidia's SOC strategy to date, with an ARM license, has been stagnant. I don't know why this will make them any better at it, or that they will be able to leverage the licenses better than ARM had already done. I think nVidia's best play is to force CUDA cores down every licensee's throat, to get their graphics/compute API to be standard (as opposed to Imagination or Mali) - and even with that, not sure $40B returns on that extremely fast. Your still leaning heavily on your GPU infrastructure, you just now have a popular CPU architecture you can use to leverage people into it.

There's always POWER~ (hahaha)
 
Nanobot said:
It should be interesting to see who's spotting them the $40 billion seeing as they don't really have any cash on hand. Maybe Jensen should start baking batches of credit cards.
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Buy out deals are not all done in cash. Most of it is done with shares. More details on the deal can be found here:

https://www.barrons.com/articles/nv...oftbank-in-largest-ever-chip-deal-51600044336

NVIDIA are giving arm $2 billion in cash at signing, with a total of $12 billion to be paid out over time. As of July 31, 2020 NVIDIA had about $11 billion of cash on hand. $21.5 billion will be paid with NVIDIA shares to arm, and $1.5 billion will be paid by issuing stock to arm employees. The remaining $5 billion is part of an earn-out agreement in common stock for specific financial targets set by arm.
 
Uvilla said:
As far as tech goes its all over priced. When no revenue companies like whatsapp sell for 20billion, I think Nvidia is getting a bargain (in relative fuzzy tech sector money math) for being at the helm of the second or the biggest ISA. Nvidia turns out to be the only one with a vision... Too bad for everyone else... Short-sighted all of them. That being said, I think its clear the government injects money in the tech sector as a matter of routine.. but thats just crazy conspiracy theories of mine.
Click to expand...

Well it depends on what government. Don't forget france has been financially backing tech companies with government money for Decades. Other countries do that as well. And I could see America doing that, but we've always said you want money make a better product... so perhaps not backing doesn't instill complacency.
 
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