- Oct 1, 2019
Deal to be made up of $12 billion in cash, and $21.5 billion in Nvidia stock.
Nvidia has confirmed that it has purchased Arm from SoftBank in a $40 billion deal.
Under the terms, Nvidia will pay SoftBank $12 billion in cash, and $21.5 billion in Nvidia stock, with $5 billion placed under an earn-out clause. Nvidia is not purchasing the IoT services part of Arm.
"Simon Segars and his team at Arm have built an extraordinary company that is contributing to nearly every technology market in the world," Nvidia founder and CEO Jensen Huang said.
"Uniting Nvidia's AI computing capabilities with the vast ecosystem of Arm's CPU, we can advance computing from the cloud, smartphones, PCs, self-driving cars and robotics, to edge IoT, and expand AI computing to every corner of the globe."
The companies said Arm would stay in Cambridge, and Nvidia would issue $1.5 billion in equity to Arm employees.
"Arm's business model is brilliant. We will maintain its open-licensing model and customer neutrality, serving customers in any industry, across the world, and further expand Arm's IP licensing portfolio," Huang said.