SoftBank is reportedly close to selling ARM to NVIDIA

[OneMoreThing...]

SoftBank might be close to finding a buyer for ARM, and it won’t surprise you who the bidder might be. Wall Street Journal sources say SoftBank is close to a deal to sell ARM Holdings to NVIDIA for “more than” $40 billion. The two have reportedly bee...

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[chscag]

Arm, Arm, who has the Arm? Is that one Arm or two Arms? And does anyone care?

 

[Randy B. Singer]

This may be bad news for Apple . Nvidia has had a bad relationship with Apple for a long time. Nvidia once had a deal with Apple to be their sole supplier of video cards, but before the deal was announced Nvidia got on Steve's bad side by leaking information, and Steve absolutely humiliated Nvidia over it. Apple cancelled the deal, and the two companies relationship has been frosty ever since.

Apple is about to move all of their computers to ARM-based processors, and all of their other devices already use ARM-based processors. If Nvidia buys ARM, Apple has to hope that enough time has gone by that the two companies can make up with each other.

 

[krs]

Sounds like the sale happened

ARM: UK-based chip designer sold to US firm Nvidia

The new owner of the Cambridge-based chip designer has promised to keep its headquarters in the UK.

www.bbc.com

 

[chscag]

Apple is about to move all of their computers to ARM-based processors, and all of their other devices already use ARM-based processors. If Nvidia buys ARM, Apple has to hope that enough time has gone by that the two companies can make up with each other.

I seemed to remember reading that Apple was already licensed to use ARM technology. I don't think the sale to Nvidia is going to change that.

 

[Randy B. Singer]

I seemed to remember reading that Apple was already licensed to use ARM technology. I don't think the sale to Nvidia is going to change that.

I don't doubt that they have a license, the question is how long the license is for. If it comes up for renewal in just a few years, things might be dicey for Apple.

On the other hand, Apple once owned ARM. I wouldn't be surprised if they withheld a license to the technology in perpetuity.

I'm not sure that there is any way to find out.

 

[Raz0rEdge]

ARM is in the business if licensing their technology to many fabricators, the sale to NVIDIA isn't going to change that business model. To that end, Apple is going to be like any other licensor for the ARM technology, I doubt there is going to be ANY impact on the future of Apple's ARM-strategy with this particular sale.

If anything this means that ARM is now the (and only) process for all mobile devices and all Macs going forward. This is a good deal for NVIDIA, it's one thing if the market was dwindling for technology they just spent a boatload of money on.

At the end of the day, business is business, these large companies work in a very dispassionate way unlike humans.

 

[Randy B. Singer]

...Apple is going to be like any other licensor for the ARM technology, I doubt there is going to be ANY impact on the future of Apple's ARM-strategy with this particular sale.
...

At the end of the day, business is business, these large companies work in a very dispassionate way unlike humans.

From Engadget:

SoftBank is reportedly close to selling ARM to NVIDIA

SoftBank is said to be close to a deal to sell ARM to NVIDIA for a whopping $40 billion, shaking up the chip industry.

www.engadget.com

"NVIDIA clearly wouldn’t be a neutral owner. It might face stiff opposition from officials concerned that it might withhold technology from rival chipmakers or otherwise give itself an unfair advantage. It could effectively dictate the futures of companies that design ARM-based chips, like Apple and Samsung..."

 

[krs]

I was wondering why Apple wasn't interested in buying ARM.
Here is a bit of insight along with some interesting comments

SoftBank May Be Selling Arm, But Apple Isn't Interested

SoftBank, the company that owns chip designer Arm Holdings, is exploring options that could include a full or partial sale of Arm, according to...

www.macrumors.com

 

[Raz0rEdge]

From Engadget:

SoftBank is reportedly close to selling ARM to NVIDIA

SoftBank is said to be close to a deal to sell ARM to NVIDIA for a whopping $40 billion, shaking up the chip industry.

www.engadget.com

"NVIDIA clearly wouldn’t be a neutral owner. It might face stiff opposition from officials concerned that it might withhold technology from rival chipmakers or otherwise give itself an unfair advantage. It could effectively dictate the futures of companies that design ARM-based chips, like Apple and Samsung..."

I would say that would be quite foolish of NVIDIA to not be neutral on this front. I would even run ARM as a totally separate subsidiary that does its own deals with people and "sells" chips to NVIDIA if need be. It would monumentally stupid on their part to take a staple business and gut it by playing favorites or messing with revenue model.

I was wondering why Apple wasn't interested in buying ARM.
Here is a bit of insight along with some interesting comments

SoftBank May Be Selling Arm, But Apple Isn't Interested

SoftBank, the company that owns chip designer Arm Holdings, is exploring options that could include a full or partial sale of Arm, according to...

www.macrumors.com

Apple would only purchase this if they could use it exclusively, which is unlikely here. This is not a good business fit for Apple.

 

[Randy B. Singer]

I would say that would be quite foolish of NVIDIA to not be neutral on this front.

Maybe. Or maybe they would do some calculations and decide that they could make more money selling their own ARM-based chips rather than selling the rights to ARM to certain competitors to allow those competitors to sell *their* chips. It's not like companies are never cut-throat.

It's also not like companies don't hold a grudge or do things that aren't in their own best interest simply out of spite. What Jobs did to Nvidia when Apple cut them off was purely a spiteful act. It humiliated Nvidia, but it wasn't really at all in Apple's best interest. Apple had to go with inferior graphics processors from other companies for ages after that.

Apple would only purchase this if they could use it exclusively, which is unlikely here. This is not a good business fit for Apple.

You do know that Apple was a previous owner of ARM? In fact, Apple and Acorn FOUNDED ARM jointly. Apple seemed to think that it was a good business fit to create and own ARM back then. (Apple used ARM-based processors in the Newton.) And they never used ARM technology exclusively when they owned ARM.

Arm Holdings - Wikipedia

en.wikipedia.org