It seems that nearly after months of rumors and speculations, the Arm acquisition deal has finally become a reality because, over the weekend, NVidia has conveyed that it has plans to acquire chipmaker Arm Holdings from SoftBank Group. As of now, the value of the deal is estimated at the US $ 40 billion. It must be noted that back in 2016, SoftBank had purchased Arm Holdings for at a cost of US $ 31.4 billion.

Specifically, this time, according to news, NVidia is going to pay SoftBank a sum of US $ 21.5 billion in stock and a sum of US $12 billion in cash. Moreover, US $2 billion in cash payable at signing and the US $ 1.5 billion in equity to Arm employees. According to the news, as per the deal, Arm will continue to remain its headquarters in Cambridge, UK.

On the other hand, the latest news suggests that NVidia is planning to build an AI research facility for facilitating developments in life sciences, healthcare, robotics, self-driving cars, and many other such fields. NVidia will also reportedly build an AI supercomputer in Cambridge using Arm CPUs.

NVIDIA finalizes Arm acquisition deal at $40 Billion
NVIDIA finalizes Arm acquisition deal at $40 Billion

Jensen Huang, Nvidia’s Founder and CEO 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.”

It seems that this new deal does not affect Arm’s existing licensing model because, at a recent press release, Nvidia made it clear that Arm will continue to operate in its open licensing model.

Though the particular specifications of the benefit of Arm are not clear at this moment, NVidia, said that Arm partners will benefit from Nvidia’s ‘numerous innovations’.

Arm CEO, Simon Segars said “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. Delivering on this vision requires new approaches to hardware and software and a long-term commitment to research and development.”

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