Comments on: Now Nvidia Is Armed To The Teeth https://www.nextplatform.com/2020/09/14/now-nvidia-is-armed-to-the-teeth/ In-depth coverage of high-end computing at large enterprises, supercomputing centers, hyperscale data centers, and public clouds. Tue, 29 Sep 2020 13:15:22 +0000 hourly 1 https://wordpress.org/?v=6.7.1 By: Andrew Stout https://www.nextplatform.com/2020/09/14/now-nvidia-is-armed-to-the-teeth/#comment-154949 Mon, 21 Sep 2020 16:01:29 +0000 http://www.nextplatform.com/?p=137112#comment-154949 In reply to The_Down_Side_Is_Not_Up.

Why? If you look at ” past market tactics” you actually see NVDA co-Existing putting out it’s own FE cards along side Board Partners who customize the NVDA product with alternative power solutions, clicking, cooling, aesthetics, etc. NVDA alliws A HECK of a lot more freedom and competition then -I dunno, the TWO x86 alternatives.

If NVDA makes an ARM chip people want, why shouldn’t that be allowed? Why would there be any less partnership with others in ARM, especially when NVDA announced in advance that they don’t intend to close downtheir competitors? Why is expanding the universe / bundling of CUDA a bad thing? ARM users might use the CUDA features & benefit from them, making AMD look less attractive? IS it not allowed for NVDA to make competitors look less attractive? Why is NVDA prevented from owning a CPU biz when every major competitor has a CPU & GPU segment?

]]> By: Aryan Blaauw https://www.nextplatform.com/2020/09/14/now-nvidia-is-armed-to-the-teeth/#comment-154815 Thu, 17 Sep 2020 07:51:05 +0000 http://www.nextplatform.com/?p=137112#comment-154815 Very happy with this development.

As the UK is becoming an island (again) it needs this sort of collaborations.
Next to some fine tax breaks to lure and keep these giants of tech.

It was the only and best outcome for both companies. *applause*

That old geezer in Switzerland can put that in his pipe and smoke it.

]]> By: The_Down_Side_Is_Not_Up https://www.nextplatform.com/2020/09/14/now-nvidia-is-armed-to-the-teeth/#comment-154759 Tue, 15 Sep 2020 16:34:32 +0000 http://www.nextplatform.com/?p=137112#comment-154759 Arm Holdings need to remain Neutral and not allowed by anyone that Already Has an ARM Architectural license(Nvidia/Others), or any ARM License, as that makes any other ARM Licensees Direct Competitors. This fails any litmus test for a market that’s built upon a Neutral IP provider such as ARM Holdings and that unique business model that Arm Holdings brought about that has generated Trillions of dollars in economic activity and innovation over the decades.

No matter what Nvidia has said one needs to look at Nvidia’s past market tactics and that needs to be the first order of business for the actual independent press!

]]> By: Matt https://www.nextplatform.com/2020/09/14/now-nvidia-is-armed-to-the-teeth/#comment-154703 Mon, 14 Sep 2020 18:09:04 +0000 http://www.nextplatform.com/?p=137112#comment-154703 One thing mentioned in NVIDIA’s press conference and press materials for the deal which I didn’t see mentioned before that is that apparently ARM is profitable outside its IoT Services business segment, which NVIDIA is not buying. NVIDIA claims a 35% adjusted EBITDA margin. They expect revenues of $1.8 billion so that’s $630 million EBITDA. That’s a big difference from what it looked like the financial performance of the company was from the numbers including the IoT Services business.

It’s better than Mellanox’s financial performance at the time of that deal closing. And don’t forget that Mellanox (a bit unexpectedly) grew substantially in the time from the purchase deal being made and the deal closing. Mellanox’s financials at the time the purchase was agreed to were substantially weaker than ARM’s. Mellanox’s revenue was a new record of $1.09 billion in 2018 and it’s net income was $134 million after a net loss of $19.4 million in 2017. Now, Mellanox was showing more growth at the time of purchase agreement than ARM is, but ARM is still apparently far more profitable than Mellanox was at the time. If NVIDIA had bought Mellanox a year later it probably would have been quite a bit more expensive.

So even without strategic considerations, considering just the stable $600 million EBITDA that will be accretive to NVIDIA’s earnings, it now makes sense that ARM would be valued substantially more than the $7 billion paid for Mellanox. It’s a bit amazing that the IoT Services business is eating up something like $1 billion in costs and only providing about $200 million in revenue, though.

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