Nvidia and SoftBank Group Corp. have reached a definitive agreement under which Nvidia will acquire ARM from SoftBank in a transaction valued at $40 billion. This combination unites Nvidia’s leading AI computing platform with ARM’s vast ecosystem to establish a premier computing company for the age of AI.
According to the official press release, Nvidia will pay SoftBank a total of $21.5 billion in Nvidia common stock and $12 billion in cash, which includes $2 billion payable at signing. Additionally, SoftBank could receive up to $5 billion in cash or common stock, subject to ARM meeting specific financial performance targets.
The transaction is subject to customary closing conditions, including receipt of regulatory approvals from the U.S., UK, European Union, and China. The deal is expected to close in approximately 18 months.
Key benefits of the acquisition include:
- Accelerating innovation in AI and other high-growth markets.
- Expanding Nvidia’s reach into the mobile and embedded markets.
- Creating new opportunities for ARM licensees.
Nvidia has stated its commitment to maintaining ARM’s open-licensing model and customer neutrality, ensuring that ARM’s ecosystem continues to thrive.
