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Home News Nvidia to acquire chip designer ARM in deal worth $40 billion

Nvidia to acquire chip designer ARM in deal worth $40 billion

Nvidia has announced it will acquire chip designer ARM from current owner SoftBank in a cash and stock deal valued at $40 billion.

In a move that will give Nvidia a chance of powering past rivals such as Intel and AMD, the California-based company said it has some exciting plans in store, including the creation of a state-of-the-art ARM-powered A.I. supercomputer, the opening of training facilities for developers, and the launch of a startup incubator that will aim to attract world-class research talent.

Nvidia said it would execute these plans in the U.K. where ARM is headquartered and currently employs around half of its 6,000-strong workforce.

According to the terms of the agreement, the U.S. chipmaker will pay Japanese tech giant SoftBank $21.5 billion in stock and $12 billion in cash. SoftBank, which bought ARM for $32 billion in 2016, will also receive around $5 billion in cash or stock, dependent upon ARM’s financial performance. Nvidia will also provide ARM’s employees with $1.5 billion in stock.

Nvidia said the deal, which is subject to U.S. regulatory and antitrust reviews, will play an important role in helping it to advance its artificial intelligence (A.I.) computing ambitions.

“A.I. is the most powerful technology force of our time and has launched a new wave of computing,” Jensen Huang, founder and CEO of Nvidia, said in a release. “In the years ahead, trillions of computers running A.I. will create a new Internet-of-Things (IoT) that is thousands of times larger than today’s Internet-of-People. Our combination will create a company fabulously positioned for the age of A.I.”

Huang added: “Uniting Nvidia’s A.I. computing capabilities with the vast ecosystem of ARM’s CPU, we can advance computing from the cloud, smartphones, PCs, self-driving cars, and robotics, to edge IoT, and expand A.I. computing to every corner of the globe.”

Commenting on the tie-up, ARM boss Simon Segars said the two companies “share a vision and passion that ubiquitous, energy-efficient computing will help address the world’s most pressing issues from climate change to healthcare, from agriculture to education.”

ARM, which is based in Cambridge about 40 miles north of London, was founded in 1990 before going on to become a leading semiconductor and software design company. It licenses its technology to chip makers, with its technology found in a huge number of products worldwide, among them smartphones, tablets, vehicles, and data centers.

After licensing the processor design, an ARM customer can then customize the architecture to suit its own needs. Licensees usually pay an initial fee, with ARM also collecting royalty payments on every chip that contains its technology. To date, 180 billion chips have been shipped by the company’s licensees.

For more on the significance of Nvidia’s acquisition of ARM, be sure to check out this piece on Digital Trends.


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Tello Buyer’s Guide (October 2020)

Just about anyone you’d ask is familiar with the top-tier wireless service providers in Verizon, AT&T, and T-Mobile. What about lesser known, or newer brands?Let’s take a look at a relatively younger carrier, Tello. This guide will serve to help you understand what the MVNO offers and how it competes in the mobile arena.Where can I buy an unlocked phone?Buying an unlocked phone? Consider these questionsTips for buying a used phoneTell me about TelloTello is a newer player in the mobile field and finds itself in the increasingly crowded segment of low-cost, no-frills alternatives. Its service uses Sprint’s network for coverage but it operates with its own plans and features.What are Tello rate plans like?Tello rate plans are no-contract, meaning you can go month-to-month with no long-term agreement, cancellation, or activation fees. As many carriers in this space do, Tello throttles speeds once hitting the data allowance as opposed to charging overage fees.Customers can mix and match rate plans based on personal needs. A lot of users have access to Wi-Fi connections, or don’t make many calls in a month. To that end, it’s possible to dial things up or down to suit tastes; subscribers can change their plan as often as needed.Ready-made PlansThere are four ready-made plans that do a great job of meeting the demands of most users. They cost as low as $10 per month and include unlimited text and calling.$10/month: Unlimited Talk and Text with 1GB of high-speed data$14/month: Unlimited Talk and Text with 2GB of high-speed data$19/month: Unlimited Talk and Text with 4GB of high-speed data$39/month: Unlimited Talk and Text with Unlimited high-speed dataAre there any other Tello features?Tello offers a handful of other options to its customers, including mobile hotspot and international calls. You can use any amount of your data plan to tether other devices. Calls to Mexico, Canada, and China are the same as if you called in the United States.What about international calls and texts?In addition to the aforementioned countries, Tello subscribers can make calls to other India, Cuba, and a host of other countries. Each has its own rate and can be used in a mix-and-match fashion. All one need do is purchase a Pay As You Go credit ahead of time.The credit can also be used for SMS or data, depending on which plan you’re signed up with at the time.Does Tello have a referral program?Yes, they’re called Tello Dollars and the referral program rewards you for signing up friends and family members. Share your referral link, and once your friend places their first successful order, you get $10 Tello Dollars. Your friend also gets $10 Tello Dollars.You can refer as many friends as you like and the money can be used for things like rate plans, phones, and PAYG credits.What kind of phones does Tello offer?Taking a look at the current lineup of phones offered through Tello we find familiar names like LG, Samsung, and Motorola. All told, there are more than two dozen phones to choose from but it’s a real tossup as to what’s available.Buying an unlocked phone? Consider these questionsWhich carrier has the best value at $50 a month?Which major prepaid carrier has the best $40 rate plan?As is the case with prepaid providers or MVNO brands, selection is a mixed bag and leans more toward affordability and not performance.READ: Best phones available at TelloIt’s worth noting that the phones you order from Tello will come in plain generic packaging and may only include the charger and battery. There will be no manual, earbuds, or other accessories.Are there any phone deals with Tello?Indeed, there are plenty of phones with discounts, some ranging as high as $50 off. About half of the current roster is comprised of refurbished phones, which also means lower prices.Can I use my own phone with Tello?Yes, you can use any Sprint-compatible phone just so long as there’s no unpaid balance on another network. You’ll need to ensure it’s unlocked for use outside of Sprint if it was previously used with another carrier.Tello only accepts unlocked CDMA devices or unlocked multi-network phones that incorporate both CDMA and GSM technologies.Head to Tello’s website to check whether your specific model is supported.