• Thu. Dec 9th, 2021



4 Key Things Nvidia Just Shared About its Plans for ARM

During a series of press and analyst calls, Nvidia  (NVDA) – Get Report CEO Jensen Huang shared some details about how his company aims to make its planned acquisition of ARM pay off.

To recap: Nvidia is paying between $35 billion and $40 billion — the exact sum will depend on whether $5 billion worth of earn-out payments to ARM owner SoftBank are made — to buy ARM. ARM controls what’s by far the world’s most widely-used CPU instruction set architecture (ISA), while licensing its ISA, CPU core designs and other IP to most of the world’s chip developers.

Nvidia asserts the cash-and-stock deal will be immediately accretive to non-GAAP EPS at the time of closing, and forecasts (amid expectations of close regulatory scrutiny) that the deal will close within 18 months. Nvidia shares closed up 5.8% to $514.89 in Monday trading.

Here are a few noteworthy things that Huang has shared about Nvidia’s plans for ARM since the deal was announced on Sunday afternoon.

1. Bringing Nvidia’s GPU and AI IP to ARM-Powered Chips Is a Top Priority

On multiple occasions, Huang emphasized that Nvidia sees a large opportunity to license its GPU, AI co-processor and video encoder/decoder technologies to chip developers creating ARM-powered silicon.

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