Nvidia’s $40B deal for Arm could affect Apple
Nvidia, best known as a major player in graphics processing, today announced it had locked down a deal to purchase U.K.-based chip licensing giant Arm Limited for $40 billion.
According to Bloomberg, Nvidia will pay Arm’s current owner, SoftBank Group, $12 billion in cash and $21.5 billion in stock, along with other payments, including a signing bonus and possible milestone moneys based on meeting performance targets.
Arm does not manufacture silicon; instead it designs processors. It then licenses those designs for others to customize – or not – before fabricators crank out chips from silicon wafers. Arm’s impact has been massive, primarily because its made-for-mobile chips have powered virtually every smartphone since Apple’s 2007 introduction of its iPhone.