SoftBank Group is near to selling British chip designer Arm Holdings to Nvidia Corp for more than $40 billion, a deal that would create a giant in the processor industry, the Wall Street Journal has reported.
The cash-and-stock deal can be sealed next week and could value Arm at the low $40 billions, the WSJ report said, citing sources.
Nvidia is famous for its graphics processors that power video games, however it has developed other markets such as artificial intelligence, self-driving automobiles and data centres.
Arm supplies the processor technologies for almost all mobile devices such as phones and tablets but is also expanding into chips for cars, data centre providers and other devices.
The UK company does not make chips. Rather it permits out the inherent technology so others can make chips. It has previously collaborated with Nvidia.
Last year Nvidia stated it would create its processors work with chips from Arm to build supercomputers deepening its push into systems which are used for simulating both climate change predictions and atomic weapons.
SoftBank acquired Arm for $32 billion in 2016, its own largest-ever purchase, as a way to expand in the world wide web.
The terms would mark a big win for the Japanese business that has struggled to jump-start growth in the business of late, according to the WSJ.
Nvidia declined to comment. SoftBank and Arm didn’t respond to a requests for comments from journalists at our partner news agency Reuters..
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Shubham Kalia. Editing by Chizu Nomiyama and Diane Craft.
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