Nvidia has approached Softbank and is considering buying ARM Holdings

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uzzi38

uzzi38

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Will update with articles as they come out (they haven't yet but news is public). For now just a couple of Tweets:

https://twitter.com/x/status/1286003982079533056

https://twitter.com/x/status/1286004990327132161

This is a real significant move for Nvidia, having a huge role in ARM core designs could have major implementations down the line. Most importantly, it secures them a platform and ecosystem down the line.

Oh and I guess Nvidia becomes the defacto standard for GPU IP for mobile instead of Mali. That too.

EDIT: Bloomberg article here: https://www.bloomberg.com/news/arti...ompany-arm-is-said-to-attract-nvidia-interest
 
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LightningZ71

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Where does NVidia go if this deal gets fully torpedoed?

I suspect that the best avenue for Nvidia is a strategic partnership with Quallcom involving an exchange of IP for GPU tech and CPU tech.
 
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Saylick

Saylick

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LightningZ71 said:
Where does NVidia go if this deal gets fully torpedoed?

I suspect that the best avenue for Nvidia is a strategic partnership with Quallcom involving an exchange of IP for GPU tech and CPU tech.
Click to expand...
They don't go "anywhere" besides where they are currently heading. It's not like they couldn't already license ARM cores and develop their own server CPUs, which they are doing anyways with Grace and whatever follows it. If we assume that ARM was acquired and would operate completely independently from Nvidia (with separate management and financials, e.g. if Nvidia wanted an ARM core, they'd have to license it from their own subsidiary), the most they could do I suppose is to license Nvidia IP through ARM. If the acquisition does not go through, they lose that ability.
 
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Stuka87

Stuka87

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LightningZ71 said:
Where does NVidia go if this deal gets fully torpedoed?

I suspect that the best avenue for Nvidia is a strategic partnership with Quallcom involving an exchange of IP for GPU tech and CPU tech.
Click to expand...

Not sure what you mean. They already build ARM CPUs, they just keep doing what they do now. Only now they won't have a strangle hold on the industry. (assuming it does get rejected).
 
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Saylick

Saylick

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jpiniero said:
Softbank is kind of screwed, they'll have to take ARM public instead and who knows how much they will get.
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Considering how hot semiconductor stocks are in market at the moment (*cough* except for Intel *cough*), I think they could get a fair amount of money if ARM went public. I think the average Joe is becoming more and more aware of how important and vital semiconductors are to the future. The more potential investors there are, the higher the offering. Heck, if ARM went public today, I'd probably buy some shares (for the right price).
 
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Doug S

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Saylick said:
Considering how hot semiconductor stocks are in market at the moment (*cough* except for Intel *cough*), I think they could get a fair amount of money if ARM went public. I think the average Joe is becoming more and more aware of how important and vital semiconductors are to the future. The more potential investors there are, the higher the offering. Heck, if ARM went public today, I'd probably buy some shares (for the right price).
Click to expand...

Everything is hot right now, but to take advantage ARM needs the Nvidia deal to be shot down before the bubble bursts. Otherwise they'll be lucky to get 1/3 of what Nvidia is offering.
 
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DrMrLordX

DrMrLordX

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LightningZ71 said:
Where does NVidia go if this deal gets fully torpedoed?

I suspect that the best avenue for Nvidia is a strategic partnership with Quallcom involving an exchange of IP for GPU tech and CPU tech.
Click to expand...

They keep licensing NeoVerse and keep raking in oodles of money:

nvidianews.nvidia.com

NVIDIA Announces Financial Results for Second Quarter Fiscal 2022

NVIDIA today reported record revenue for the second quarter ended August 1, 2021, of $6.51 billion, up 68 percent from a year earlier and up 15 percent from the previous quarter, with record revenue from the company’s Gaming, Data Center and Professional Visualization platforms.
nvidianews.nvidia.com nvidianews.nvidia.com

For now, anyway.
 
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Asterox

Asterox

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Roland00Address

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Asterox said:
Not unexpected, so this is the end of all these entanglements or uncertainties.

videocardz.com

Federal Trade Commission is suing to block NVIDIA's $40 billion acquisition of ARM - VideoCardz.com

FTC Sues to Block $40 Billion Semiconductor Chip Merger Vertical deal between chip supplier Nvidia and chip design provider Arm would allow combined firm to stifle competing next-generation technologies The Federal Trade Commission today sued to block U.S. chip supplier Nvidia Corp.’s $40...
videocardz.com videocardz.com
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You got there first
smile-or-happy-face.png

www.thurrott.com

FTC Sues to Block Sale of Arm to Nvidia

The U.S. Federal Trade Commission (FTC) today sued to block Nvidia’s $40 billion acquisition of chip designer Arm, citing competitive concerns.
www.thurrott.com www.thurrott.com
 
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Asterox

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Saylick

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Can't say I'm surprised. Everyone saw this coming from a mile away. Nvidia are apparently going to fight the FTC in court instead of dropping the acquisition attempt, but good luck to them. Even if they win the fight in court with the FTC, there's still the UK, EU, and China to contend with. The kicker is that the decision by the regulatory body in China (SAMR) is final. If they outright reject the acquisition, it can't be fought in court.

Nvidia keep touting that it would be beneficial to the industry if they successfully acquired ARM, but I don't think I've ever seen a company fight this hard to acquire another company for the "benefit of the industry". Non-naive people know that when a company acquires another, it's purely done for the sake of that company. There ain't no such thing as altruistic acquisitions, and I sure as hell ain't going to think that Nvidia is doing this altruistically.

“As we move into this next step in the FTC process, we will continue to work to demonstrate that this transaction will benefit the industry and promote competition,” an Nvidia representative said in a statement.

“NVIDIA will invest in Arm’s R&D, accelerate its roadmaps, and expand its offerings in ways that boost competition, create more opportunities for all Arm licensees and expand the Arm ecosystem. NVIDIA is committed to preserving Arm’s open licensing model and ensuring that its IP is available to all interested licensees, current and future,” it continued.
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Source: https://www.cnbc.com/2021/12/02/ftc-sues-to-block-nvidias-40-billion-acquisition-of-arm.html

What a load of crap. Yes, by financing ARM with a buttload more money, they can come up with better core designs for licensees. Meanwhile, Nvidia basically becomes filthy rich by becoming the arms dealer (no pun intended) while everyone is pitting their own ARM licensed designs against each other. An analogy would be like the 1840's gold rush where Nvidia is an investor buying a shovel and gold pan manufacturer who is struggling financially. Sure, one can argue that giving money to the manufacturer might help them supply more shovels to prospectors, thereby giving everyone a chance to strike gold, but you can't say that Nvidia is doing it solely for the "benefit of the industry" here. They are in it to make money.
 
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Ajay

Ajay

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Saylick said:
Can't say I'm surprised. Everyone saw this coming from a mile away. Nvidia are apparently going to fight the FTC in court instead of dropping the acquisition attempt, but good luck to them. Even if they win the fight in court with the FTC, there's still the UK, EU, and China to contend with. The kicker is that the decision by the regulatory body in China (SAMR) is final. If they outright reject the acquisition, it can't be fought in court.

Nvidia keep touting that it would be beneficial to the industry if they successfully acquired ARM, but I don't think I've ever seen a company fight this hard to acquire another company for the "benefit of the industry". Non-naive people know that when a company acquires another, it's purely done for the sake of that company. There ain't no such thing as altruistic acquisitions, and I sure as hell ain't going to think that Nvidia is doing this altruistically.


Source: https://www.cnbc.com/2021/12/02/ftc-sues-to-block-nvidias-40-billion-acquisition-of-arm.html

What a load of crap. Yes, by financing ARM with a buttload more money, they can come up with better core designs for licensees. Meanwhile, Nvidia basically becomes filthy rich by becoming the arms dealer (no pun intended) while everyone is pitting their own ARM licensed designs against each other. An analogy would be like the 1840's gold rush where Nvidia is an investor buying a shovel and gold pan manufacturer who is struggling financially. Sure, one can argue that giving money to the manufacturer might help them supply more shovels to prospectors, thereby giving everyone a chance to strike gold, but you can't say that Nvidia is doing it solely for the "benefit of the industry" here. They are in it to make money.
Click to expand...

Yes, definitely a load of crap! The very fact that Nvidia is willing to fight for this acquisition across the globe, at considerable expense, is a clear indication of how important own ARM is to their OWN interests. Jensen must be packing quite a set of b*lls on himself.

If NV really stands by their own comments, buy it, make it an independent company with NV owning 49% of the shares (they deserve something for their money). Then I would believe them. As it stands, lols!
 
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Tup3x

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I'm starting to think that it would be better for NVIDIA to not buy ARM. At this point I'm not entirely sure what they would gain that would be worth the money.
 
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Heartbreaker

Heartbreaker

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Tup3x said:
I'm starting to think that it would be better for NVIDIA to not buy ARM. At this point I'm not entirely sure what they would gain that would be worth the money.
Click to expand...

NVidia talked about this when it became official they planned to acquire ARM.

The get ARMs sales channel, and the opportunity to upsell NVidia IP to any ARM license takers.
 
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Stuka87

Stuka87

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Of course nVidia will fight it. They had to pay out over a billion in cash to ARM just to get the deal going, regardless of its approval. So they are definitely going to put some money into fighting it.
 
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Ajay

Ajay

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Stuka87 said:
Of course nVidia will fight it. They had to pay out over a billion in cash to ARM just to get the deal going, regardless of its approval. So they are definitely going to put some money into fighting it.
Click to expand...
Good point. Lol! Or, was that $1B to Softbank?
 
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Saylick

Saylick

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Ajay said:
Good point. Lol! Or, was that $1B to Softband?
Click to expand...
They have to pay Softbank 1.25B USD if the merger does not go through.
Nvidia has agreed to pay SoftBank Group $1.25 billion in the event that the planned sale of the chip design house Arm Holdings to Nvidia fails to close.

That sum has been prepaid to SoftBank (ticker: SFTBY) as part of a $2 billion cash payment due from Nvidia (NVDA) at signing, according to a securities filing detailing terms of the deal. The rest of the $2 billion reflects $750 million paid to Arm—not its parent, SoftBank—for the licensing of intellectual property.
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Source: https://www.barrons.com/articles/so...ia-pays-750-million-licensing-fee-51600459412
 
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