Santa Clara chipmaker Nvidia nears $40bn buyout deal for SoftBank’s Arm Holdings

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Santa Clara chipmaker Nvidia nears $40bn buyout deal for SoftBank’s Arm Holdings

Nvidia Corp., the Santa Clara, CA-headquartered American multinational chipmaker widely known for its GPUs (Graphics Processing Unit) for gaming and professional market, had been in an advanced-stage talk with the Japanese investment conglomerate SoftBank Group Corp.

to purchase its British chip designer Arm Holdings at a jawdropping $40 billion cash-and-stock buyout deal, which in effect would likely to create a megalith in the US chipmaking industry, eventually monopolizing the US semiconductor industry further amid a weakening Intel Corp, a Wall Street Journal report published late on Saturday had unveiled citing people familiar with the subject-matter.

In point of fact, the Wall Street Journal report had also quoted one of the sources as saying that the cash-and-stock deal might be sealed as early as by next week, while the SoftBank-owned British chip designer could be valued more than $40 billion.

Nvidia to purchase Arm Holdings, to deepen its roots into supercomputing

Aside from that, latest Nvidia deal to acquire the British chip designer, which actually licenses out its chipmaking technology to other vendors, came forth roughly a year after Nvidia Corp.

had told in a statement that the Santa Clara-based semiconductor industry tycoon was going to integrate its chips with Arm Holdings’ processor in a bid to deepen its roots into a critical system that could be used for nuclear weapons and climate change predictions.

In tandem, should the deal take place, it would likely to proffer a breathing space for the SoftBank founder and Chief Executive Son, who has been criticised lately due to its dubious moves that largely coincided with Nasdaq which usually inflates the market caps of tech start-ups, the Wall Street Journal report said.

Nonetheless, while being asked over the deal, neither Nvidia nor SoftBank had commented over the subject-matter. SoftBank had acquired the British chip designer back in the 2016s for $32 billion, marking up its largest purchase ever in a bid to stretch its grasp into the chipmaking industry.