News Nvidia's Share Price Dips as UK Goverment Questions $40 Billion Arm Acquisition

waltc3

Commendable
Aug 4, 2019
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I don't see how this purchase benefits nVidia, actually. I mean, nVidia already is in a position to design its own ARM CPUs and have them manufactured by ARM--without having to pay ~$40B for the privilege. Sure, it would put nVidia in a corner-the-market position for ARM CPUs, but regulators won't let nVidia get that far even if the purchase is ultimately approved. Looks like nVidia is trying to buy its way into an AMD-like equivalency as opposed to building it from the ground up as AMD did. Typical JHH strategy, imo.
 

spongiemaster

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Dec 12, 2019
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Looks like nVidia is trying to buy its way into an AMD-like equivalency as opposed to building it from the ground up as AMD did. Typical JHH strategy, imo.
You mean like how AMD bought ATi to be their graphics division? Isn't AMD also in the process of buying Xilinx for $35 billion?
 
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thGe17

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Sep 2, 2019
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@waltc3: You have to purchase a license from ARM to use their architecture and designs and an even bigger license to make design changes and so on. That's how ARM makes its money. And it is most likely that you pay additionally depending on the sold product volume.
nVidia's plan is quiet reasonable: They have massive (GP)GPU and AI knowledge, have networking and now they try so get CPU (system) knowledge, so in the end they would be able to deliver complete systems and infrastructure on their own and they can easily custom-tailor these systems to their specific needs.

@spongiemaster: Yes, AMD will most likely finish the Xilinx deal by the end of 2021.

And in the end, both companies need the broader basis and portfolio to compete against Intel and other competitors in the long term.
 

hotaru251

Distinguished
Oct 30, 2014
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I don't see how this purchase benefits nVidia, actually. I mean, nVidia already is in a position to design its own ARM CPUs and have them manufactured by ARM--without having to pay ~$40B for the privilege. Sure, it would put nVidia in a corner-the-market position for ARM CPUs, but regulators won't let nVidia get that far even if the purchase is ultimately approved. Looks like nVidia is trying to buy its way into an AMD-like equivalency as opposed to building it from the ground up as AMD did. Typical JHH strategy, imo.
same reason other cpu/gpu buy stuff even though they can do it themselves...the talent (ppl) and the patents along side boosting your companies value
 

watzupken

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Mar 16, 2020
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Jensen should have seen this coming. In the first place, there is an obvious conflict of interest where ARM is an independent and their technology is widely used by a lot of big chip designing/ making companies. The fact that Nvidia already is a licensed user of ARM technology just made the reason/ motive as to why they are buying the entire firm even more questionable. Jensen will be delusional to think that any of their competitors will happily agree to the merger.

To add on to the hurdle, with US sanctioning China from US technology, it is highly unlikely China and their allies will agree to the merger.
 

morgan.kenneth

Reputable
Mar 2, 2018
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So it's ok to be owned by the Japanese, but not a US company? So dumb.

Of course Nvidia wants the ARM brand. It generates $30 Billion in sales a year and allows them to compete with AMD and Intel. Such a waste of time bitching about this merger.
 

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