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NVIDIA to Acquire Arm for $40 Billion, Creating World's Premier Computing Company for the Age of AI

NVIDIA and SoftBank Group Corp. (SBG) today announced a definitive agreement under which NVIDIA will acquire Arm Limited from SBG and the SoftBank Vision Fund (together, "SoftBank") in a transaction valued at $40 billion. The transaction is expected to be immediately accretive to NVIDIA's non-GAAP gross margin and non-GAAP earnings per share.

The combination brings together NVIDIA's leading AI computing platform with Arm's vast ecosystem to create the premier computing company for the age of artificial intelligence, accelerating innovation while expanding into large, high-growth markets. SoftBank will remain committed to Arm's long-term success through its ownership stake in NVIDIA, expected to be under 10 percent.

SoftBank to Sell 25% Stake on ARM to Saudi Investment Group

After pulling off one of the highest-value acquisitions ever in the tech world through its purchase of ARM for $31 billion in September 2016, SoftBank is now looking to sell 25% of the company to a Saudi investment group. The $8 billion stake in ARM is being sold to Vision Fund, a $100 billion technology fund created by SoftBank founder Masayoshi Son. Six months later, SoftBank is in the final-stage talks towards conclusion of the sale.

This seems like an overly fast negotiation time towards the selling of such a large stake on ARM - especially considering the companies' increasing importance in the technology sector. ARM designs power more than 90% of the world's smartphones, and recent announcements of companies such as Microsoft in increasing ARM's presence in the server space point only to increased growth of the company. A sale in this state of affairs (and with such admittedly little information) seems a little... untimely.
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