Update: it’s official now – NVIDIA is buying ARM.
Nvidia Corp is close to a deal to buy British chip designer Arm Holdings from SoftBank Group Corp for more than $40 billion in a deal which would create a giant in the chip industry, according to two people familiar with the matter.
A cash and stock deal for Arm could be announced as early as next week, the sources said.
That will create one hell of a giant chip company, but at the same time – what alternatives are there? ARM on its own probably won’t make it, SoftBank has no clue what to do with ARM, and any of the other major players – Apple, Amazon, Google, Microsoft – would be even worse, since they all have platforms to lock you into, and ARM would be a great asset in that struggle. At least NVIDIA just wants to sell as many chips to as many people as possible, and isn’t that interested in locking you into a platform.
That being said – who knows? Often, the downsides to deals like this don’t come out until years later. We’ll just have to wait and see.
“ARM on its own probably won’t make it,”
This engineer had never seen such bullshit.
This has nothing to do with Softbank not knowing what to do with them. Softbank invests money from multiple Saudi and Arab billionaires and sovereign wealth funds. WeWork lost $39B in value. Something had to be sold to make the Saudi princes who are really behind Softbank whole from that massive investment loss. I’ll leave the implied consequences of what would happen otherwise out of this post.