Markets lifted by deal-making frenzy – business live | Business


While NVIDIA is best known for its gaming graphics chips and Arm for its smartphone chips, this deal is being predicated on Artificial Intelligence – an area where NVIDIA has expertise but which is really in its infancy.

By drawing on Arm’s huge pool of active devices, as well as its technical knowhow, NVIDIA’s hoping it can crack a technology with potential applications in cloud, smartphones, PCs, self-driving cars, robotics and the Internet of Things. It’s a big and uncertain bet, and comes at a high price. Fortunately the two groups have core businesses which are very cash generative, and together they should be able to quickly pay down any financial hangover from the deal.


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