Nvidia officially terminates its Arm purchase2022-02-08 18:26 by Daniela
Tags: Nvidia, Arm, Softbank
Nvidia's bid to buy Arm from SoftBank has finally ended in failure. The semiconductor giants issued a joint statement Tuesday saying the deal has been scrapped due to "significant regulatory challenges."
In late 2020, Nvidia announced it would be buying Arm from SoftBank for nearly $40 billion in a cash and stock-based purchase. Nvidia's shares have since increased in value, making the deal worth roughly $66 billion today.
The deal, the largest ever in the chip sector, would have given California-based Nvidia control of a company that makes technology at the heart of most of the world's mobile devices. A handful of Big Tech companies that rely on Arm's chip designs, including Qualcomm and Microsoft, had objected to the purchase.
Nvidia will be paying $1.25 billion to SoftBank for failing to go through with the transaction, while Arm CEO Simon Segars is stepping down to be replaced by Arm's head of IP Rene Haas, who coincidentally used to run Nvidia's own Arm business many years ago.
"Arm has a bright future, and we'll continue to support them as a proud licensee for decades to come," said Jensen Huang, founder and chief executive officer of NVIDIA. "Arm is at the center of the important dynamics in computing. Though we won't be one company, we will partner closely with Arm. The significant investments that Masa has made have positioned Arm to expand the reach of the Arm CPU beyond client computing to supercomputing, cloud, AI and robotics. I expect Arm to be the most important CPU architecture of the next decade."
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