NVIDIA buys ARM for $ 40 billion in record acquisition

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One of the biggest acquisitions in the technology market has just been made official. After months of rumors, video card maker NVIDIA bought ARM, a company that leads the mobile processor market and provides technologies to giants like Qualcomm and Apple.

The acquisition cost US $ 40 billion (R $ 212 billion at today’s price) and may have a high value. In addition to paying $ 21.5 billion in cash, $ 12 billion in shares and employee bonuses, NVIDIA may disburse an additional $ 5 billion to Softbank, the current owner of ARM, if some market goals are achieved after the purchase.

ARM has been in the hands of the Japanese Softbank since 2016, when it was acquired for about $ 31 billion. The company even tried to become independent and become a publicly traded company, but NVIDIA was quicker and managed to complete the acquisition.

According to Jensen Huang, commander of NVIDIA, ARM will continue its operations as normal and maintain its headquarters in the United Kingdom. The video card giant will also build a supercomputer for artificial intelligence using the technologies of the newly acquired firm.

Promise of neutrality

NVIDIA also promised that it will maintain market neutrality at ARM, which licenses its technologies to giants like Qualcomm, Samsung and Apple. The co-founder of the CPU company, Hermann Hauser, expressed concern about the acquisition, since the new owner of the manufacturer has the possibility to monopolize the company’s technologies and harm the cell phone market as a whole.

ARM owns the architecture used by virtually all companies in the smartphone segment today. The company’s technology is the “heart” of Snapdragon, Exynos chips and also Apple’s processors, which are coming to computers this year.

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NVIDIA said it has no reason to keep the technologies to itself and does not intend to alienate customers from the British company. It is worth mentioning that, even giving ARM freedom to do business, the GPU giant can still take advantage of the new intellectual property portfolio to develop products.

Despite dominating the GPU segment for PCs and AI technologies, NVIDIA is not very influential in the mobile device market. The company has a line of chips Tegra, which did not take off in the segment of phones and tablets, but is present in the Nintendo Switch console.


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