Acquiring the base ARM development/licensing team gains nVidia... exactly what? Apple can replace their desktop/laptop CPU with an A-series chip because they control their own econsystem. Does nVidia think it is going to somehow knock AMD out of the x86 business with an ARM chip?
A $40 billion purchase is going to require $400 billion in sales to pay back. With Intel's dominance broken where is nVidia going to get those sales in a commodity market?
Softbank is not an example of successful investment.
It increased from $31 Billion to $40 Billion since 2016. Maybe they were hoping for better, but it beats Softbank's WeWork investment.
The point was, maybe there's more to it than some simplistic numbers. ARM has lots of parts. Maybe Nvidia sells off some. Maybe they have a plan to be a leader in data center CPUs 7 years from now. Or they need ARM to fill gaps in their planned autonomous car offerings. Or they want to be a leader in phone GPU technology. Or all of these plus some others.
That's the OP's point: NVIDIA seems to have overpaid for ARM if they plan to continue business as usual. In order to justify the price, they will have some other plan.
For what purpose? (Score:2)
Acquiring the base ARM development/licensing team gains nVidia... exactly what? Apple can replace their desktop/laptop CPU with an A-series chip because they control their own econsystem. Does nVidia think it is going to somehow knock AMD out of the x86 business with an ARM chip?
Re:For what purpose? (Score:2)
CPUs are used for a lot of things besides phones, laptops, desktops and servers.
Re: (Score:2)
A $40 billion purchase is going to require $400 billion in sales to pay back. With Intel's dominance broken where is nVidia going to get those sales in a commodity market?
Re: (Score:2)
Did SoftBank get $310 Billion in sales?
Re: (Score:2)
As far as anyone knows, not even close.
Re: (Score:2)
Softbank is not an example of successful investment.
Re: (Score:2)
Softbank is not an example of successful investment.
It increased from $31 Billion to $40 Billion since 2016. Maybe they were hoping for better, but it beats Softbank's WeWork investment.
The point was, maybe there's more to it than some simplistic numbers. ARM has lots of parts. Maybe Nvidia sells off some. Maybe they have a plan to be a leader in data center CPUs 7 years from now. Or they need ARM to fill gaps in their planned autonomous car offerings. Or they want to be a leader in phone GPU technology. Or all of these plus some others.
Re: (Score:2)
That's the OP's point: NVIDIA seems to have overpaid for ARM if they plan to continue business as usual. In order to justify the price, they will have some other plan.