Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios Pro Rata

Dive into the world of dealmakers across VC, PE and M&A with Axios Pro Rata. Delivered daily to your inbox by Dan Primack and Kia Kokalitcheva.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Nashville news?

Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Columbus news?

Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Dallas news?

Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Austin news?

Get a daily digest of the most important stories affecting your hometown with the Axios Austin newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Atlanta news?

Get a daily digest of the most important stories affecting your hometown with the Axios Atlanta newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Philadelphia news?

Get a daily digest of the most important stories affecting your hometown with the Axios Philadelphia newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Chicago news?

Get a daily digest of the most important stories affecting your hometown with the Axios Chicago newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top DC news?

Get a daily digest of the most important stories affecting your hometown with the Axios DC newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Image: Nvidia

SoftBank announced Sunday that it is selling Arm, whose chip designs power most modern phone processors, to Nvidia for $40 billion in cash and stock.

Why it matters: The move — reportedly the most expensive deal in the history of chip industry — will give Nvidia control of the company behind the core chip designs used by Apple, Qualcomm and others.

Details:

  • Nvidia is paying $21.5 billion in stock and $12 billion in cash, including $2 billion payable at signing. SoftBank can receive up to $5 billion more in stock and/or cash if the company reaches certain financial targets, with another $1.5 billion in Nvidia shares set aside for Arm employees.
  • Arm CEO Simon Segars will be joining Nvidia along with other top executives. The deal does not include Arm’s IoT Services Group.
  • Nvidia expects the deal to immediately boost its earnings.
  • Arm will remain based in Cambridge, UK, with Nvidia setting up its own "center of excellence" for AI research there.

Between the lines: Arm doesn't make chips itself, but its designs are widely used in phones, tablets, game consoles and internet-of-things devices as well as servers and networking gear.

  • Nvidia itself uses Arm designs, as do many of the biggest names in tech including Samsung, Apple and Qualcomm.
  • Nvidia says it will keep Arm's open licensing model. In the near term it is hard to imagine its key customers going anywhere, but long-term it remains to be seen if they seek to develop alternatives rather than be dependent on a rival for chip designs.

Flashback: SoftBank bought Arm in 2016 for $32 billion, seeing it as a way for the company to make a mark on a whole host of next-generation tech gear. The deal ruffled few feathers because SoftBank wasn't a key customer of Arm's technology.

What they're saying: Nvidia CEO Jensen Huang and Arm CEO Simon Segars both reaffirmed their commitment to offering Arm's technology neutrally to all customers.

  • "When they realize the obvious benefits to us and the incredible benefits that we will retain by protecting this business model, I think they will see the logic in it," Huang said, responding to a question from Axios about the fact Nvidia competes with other Arm customers.
  • Huang also noted that Nvidia no longer makes chips for cell phones and said that one goal of the deal is to make Arm-based chips an even stronger competitor to Intel in server chips. "We want to put a lot more energy into it," Huang said.
  • Segars argued that Arm has a huge incentive to continue treating all customers equally. "The value of Arm always has been the combination of our tech and our business model," Segars said. "It would obviously be hugely value destructive to do something else.”

Go deeper

Ina Fried, author of Login
Nov 9, 2020 - Technology

Why Apple's shift to homegrown chips matters

Illustration: Aïda Amer/Axios

At a Tuesday event Apple is expected to announce the first Macs to be powered by the same kind of Apple-designed chips already used for iPhones and iPads.

The big picture: While Apple will make a lot of noise about its move away from Intel processors, the more flawlessly the company executes the transition, the less consumers will even notice.

Toyota to build $1.3 billion U.S. battery plant in North Carolina

The all-electric Toyota bZ4X, the company's first battery-electric vehicle, at the Los Angeles Auto Show in Los Angeles, California on Nov. 17. Photo: Frederic J. Brown/AFP via Getty Images

Toyota announced Monday it's investing $1.3 billion to construct an electric vehicle battery "megasite" near Greensboro, North Carolina, set to open in 2025.

Why it matters: Toyota's Prius hybrid won environmental plaudits when it launched in 1997, but it has since lost ground to electric vehicle world leader Tesla, per Axios' Joann Muller. This battery plant will be the first to produce automotive batteries for Toyota in North America.

3 hours ago - Politics & Policy

Congress hunts for shortcut to pass defense funding, debt limit combo

Senate Majority Leader Chuck Schumer returned to his office Monday. Photo: Anna Moneymaker/Getty Images

The scramble in Congress to pass the National Defense Authorization Act is being complicated by an effort to tie it to a needed hike in the federal debt limit.

Why it matters: The House and Senate are rapidly coming up against a series of deadlines they must address before the end of the year — or risk disrupting crucial military funding and upending the economy. Congressional leaders are now hoping they can knock out both "must-pass" priorities in one, complex swoop.