SoftBank Preparing To Sell ARM To Nvidia for $40 Billion

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SoftBank is preparing to sell ARM to Nvidia possibly next week for $40 Billion. SoftBank bought ARM 4 years back for $31 Billion. The Wall Street Journal reported its imminent announcement.

ARM has not performed well enough under SoftBank. The pricing of the deal shows that.

The SoftBank to Nvidia deal will be one of the biggest if not the biggest in the chip industry. Both the companies were having exclusive talks for weeks, according to The Wall Street Journal.

ARM is known for powering mobile devices’ processors for most popular OEMs including Apple and Samsung, and Qualcomm. The ARM has seen a growth in its value since Microsoft started making ARM-based Surface and windows.

Apple might take similar steps and bring ARM based Macs in the future.

While the ARM is mainly for mobile devices processors, Nvidia mainly focuses on GPUs and this acquisition will help to change that.

Nvidia focuses on the GPUs mainly for PC Gamers, Researchers.

When SoftBank acquired ARM in 2016, the valuation was the same as Nvidia’s. Now Nvidia has a valuation of over $300 Billion.

Nvidia has to assure the UK government over ARM’s future in the country, as the politicians want the protection of the jobs the company holds in the country./

What do you think about this deal? What effect it will have on the chip sector according to you? Comment below.

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