[HN Gopher] SoftBank's Sale of Arm to Nvidia Collapses, Arm to IPO
       ___________________________________________________________________
        
       SoftBank's Sale of Arm to Nvidia Collapses, Arm to IPO
        
       Author : gaius_baltar
       Score  : 466 points
       Date   : 2022-02-08 02:18 UTC (20 hours ago)
        
 (HTM) web link (www.reuters.com)
 (TXT) w3m dump (www.reuters.com)
        
       | herunan wrote:
       | Hopefully listing in the LSE. It sorely needs hardware stocks.
        
         | peanuty1 wrote:
         | Softbank would be stupid to do that though.
        
       | blondie9x wrote:
       | This is hilarious. It shows why buyouts are so broken and hurt
       | shareholders over time. ARMH was public. It got bought out then
       | tried to get sold out and is now back to where it started at a
       | lower share price and capitalization.
        
       | olliej wrote:
       | This sounds super dumb - but given their acquisition was blocked,
       | would Nvidia be stopped from simply buying the majority of shares
       | at IPO?
       | 
       | To be clear I'm not suggesting this will happen or not, I'm just
       | curious if it would be allowed?
        
         | isatty wrote:
         | It will be regulated.
        
         | hollerith wrote:
         | Most very big mergers consist of one company buying all the
         | shares of a publically-traded company, so it is likely that the
         | regulators have the power to stop those kinds of mergers though
         | I cannot think of an example.
        
         | PedroBatista wrote:
         | That would be considered a "cute move" and something like that
         | would put Nvidia and some investment bankers in hot water.
         | 
         | Even if they bought a controlling amount of shares in public
         | markets that would be subject to regulation.
        
       | chriszioutas wrote:
       | if they IPO can Nvidia buy a ton of shares and indirectly buy
       | Arm?
        
         | rwmj wrote:
         | Not easily. Trying to gain a controlling stake in a public
         | company triggers regulatory involvement.
         | 
         | I'm still unclear why Nvidia would want to control Arm. If they
         | wanted an architecture they could extend as they wished, they
         | can use RISC-V (which they are already doing in a small way).
        
           | ridgered4 wrote:
           | A lot of people are of the opinion they wanted to put the
           | squeeze to everyone using ARM, but based on reading that
           | doesn't really seem super feasible to me.
           | 
           | I think nvidia is worried about being shut out of the x86
           | space so there's nowhere to sell their products. So they had
           | a long term play to guide ARM development as an alternative
           | platform. I could see that platform being useful as a hedge,
           | but also giving nvidia a better way of competing in consoles
           | and if they were really successful maybe eventually turning
           | Intel/AMDs x86 advantage into a weakness.
           | 
           | Back when Intel killed off all third party motherboard
           | chipsets nvidia won a lawsuit against Intel where they forced
           | Intel to ensure a pcie bus for GPUs on all their platforms.
           | That provision expired a few years ago. If nvidia is smart
           | (and I believe they are) they've never let go of that worry
           | that APUs might shove them out of the market. Their best bet
           | is to remain so much better than the competition they cannot
           | be ignored, but it would be wise to have a backup plan.
        
           | justin66 wrote:
           | > I'm still unclear why Nvidia would want to control Arm.
           | 
           | Nvidia have some really good high performance Arm cores that
           | they've developed and sold (Denver, Carmel). Continuing to
           | invest in that area makes some sense for Nvidia today, but it
           | would make a _lot_ of sense if the products they 're paying
           | to develop were official Arm products sold through the Arm IP
           | sales channel. In other words, it would increase Nvidia's
           | return on investment on work they're already doing.
           | 
           | (on the other hand, the amount they would have ended up
           | paying for Arm might be fully justified by the value of the
           | company but it was really, really high)
        
       | klelatti wrote:
       | Good. Never a good outcome for the industry for Arm to be owned
       | by Nvidia - and regulators have learned by now that undertakings
       | in these circumstances have little value.
       | 
       | Sorry for Simon Segars who must have had a tough job essentially
       | implementing Son's ideas. And those ideas seem to have been
       | pretty poor - Arm China debacle, focus on IoT and selling to
       | Nvidia have all clearly harmed Arm's prospects.
       | 
       | It's clear by now that selling CPUs is a mature market but that
       | Arm has room to grow and there is still lots of money to be made
       | in hardware if you innovate - eg in accelerated computing. It's
       | also true both that Arm's model works and that it has more
       | competition than ever from RISC-V.
       | 
       | A lot still to play for in my view and I think that the IPO price
       | will reflect that.
        
       | NortySpock wrote:
       | Why will ARM succeed where MIPS faded into obscurity? (Well,
       | relative obscurity. I see they are still used in media devices
       | and cheap routers.)
       | 
       | https://en.m.wikipedia.org/wiki/MIPS_Technologies
        
         | Kliment wrote:
         | ARM has already succeeded. There is no "will" here. Most
         | microcontrollers in the world are ARM. Most application
         | processors in the world are ARM. It spans from the cheapest to
         | the highest-performing parts. Nearly every smartphone in the
         | world is ARM.
        
           | justin66 wrote:
           | In the embedded arena, Arm (the instruction set) would appear
           | to be pretty replaceable. Arm and MIPS competed for the same
           | business, Arm and RISC-V can do the same. There is nothing
           | magical about any of them.
           | 
           | Arm (the corporation) can make some money for themselves by
           | coming up with increasingly cool Arm cores to sell (a mission
           | Nvidia could have aided immediately and with high impact,
           | but... nevermind) but the instruction set itself is not
           | especially important anymore. There's a lot less path-
           | dependency for companies in the embedded arena than there is
           | among, for example, desktop computer companies.
        
           | chasil wrote:
           | AArch64 is very, very late to the game, and has a lot to
           | prove (beyond mobile).
           | 
           | The older architectures were much earlier (MIPS64 1991,
           | SPARC64 1995, Itanium 2001, AMD64 2003, AArch64 2011).
           | 
           | Yes, AArch64 runs the top supercomputer, and there is
           | enthusiasm; don't mistake this for market share.
        
         | daemonhunter wrote:
         | ARM has been here before. I owned stock in Arm, before it sold.
        
         | arcticbull wrote:
         | well, it's by far the most common CPU architecture in the
         | world.
        
           | a-dub wrote:
           | my thoughts exactly.
        
         | snvzz wrote:
         | >(Well, relative obscurity. I see they are still used in media
         | devices and cheap routers.)
         | 
         | It's actually gone; MIPS owners have abandoned MIPS to focus on
         | RISC-V.
        
           | HideousKojima wrote:
           | Kind of a shame because MIPS is one of the more approachable
           | ISAs if you want to learn assembly
        
             | snvzz wrote:
             | Once you actually look, you'll likely be surprised by how
             | much RISC-V resembles MIPS.
        
             | panick21_ wrote:
             | RISC-V was designed to to be a teaching ISP. A minimal
             | RISC-V is not so different from MISP. I don't think you
             | lose much.
        
               | jason0597 wrote:
               | > RISC-V was designed to to be a teaching ISP
               | 
               | Do you have a source for this? RISC-V always seemed like
               | it was a production ISA from the get-go
        
               | Dylan16807 wrote:
               | "RISC-V is a new instruction set architecture (ISA)
               | designed to support computer architecture research and
               | education."
               | 
               | "Provide a realistic but open ISA that captures important
               | details of commercial generalpurpose ISA designs and that
               | is suitable for direct hardware implementation."
               | 
               | "Be simple to subset for educational purposes and to
               | reduce complexity of bringing up new implementations."
               | 
               | https://www2.eecs.berkeley.edu/Pubs/TechRpts/2011/EECS-20
               | 11-...
               | 
               | "Yunsup Lee, Krste Asanovi'c, David Patterson, and I
               | conceived RISC-V in the summer of 2010 as an ISA for
               | research and education at Berkeley. Two of our research
               | ventures, RAMP Gold [92] and Maven [60], had just wound
               | down. These projects were based around the SPARC ISA and
               | a lightly modified MIPS ISA, respectively, and we sought
               | to unify behind a single architecture for the next round
               | of projects."
               | 
               | https://www2.eecs.berkeley.edu/Pubs/TechRpts/2016/EECS-20
               | 16-...
        
               | tcmart14 wrote:
               | I can't remember if I heard it in a Jim Keller interview
               | or somewhere else, but I think students also helped
               | initially design the ISA for RISC-V also.
        
               | vxNsr wrote:
               | I remember reading this somewhere a few years ago as
               | well. RSIC-V was the "this is an educational ISA, but
               | we're gonna see how far we can take it"
        
               | snvzz wrote:
               | It is an educational isa that just so happens to have the
               | highest code density among 64bit architectures.
               | 
               | There's been a few changes since its inception in academy
               | and the ratified standard unprivileged spec[0].
               | 
               | [0] https://riscv.org/technical/specifications/
        
         | MangoCoffee wrote:
         | what are you talking about? ARM is every where used by all the
         | tech companies.
         | 
         | ARM is on mobile, data center and desktop/laptop.
        
         | zinekeller wrote:
         | While it's indeed good to have a healthy skepticism towards
         | these things, there's a major difference between the two: a)
         | MIPS has been acquired too many times by a company that can
         | lock others out (SGI is definitely the Nvidia of today outside
         | of consumer stuff), and b) MIPS, while have been present in
         | game consoles and workstations, didn't really have the
         | visibility ARM has today. They didn't have any consumer devices
         | labelled with "MIPS chipset inside!", even though it was
         | present in game consoles.
        
         | chasil wrote:
         | MIPS had a few architectural eccentricities, like branch delay
         | slots, that were tuned to the original design to make it fast.
         | 
         | These eccentricities eventually became a liability.
         | 
         | https://www.jwhitham.org/2016/02/risc-instruction-sets-i-hav...
        
         | mschuster91 wrote:
         | > Why will ARM succeed where MIPS faded into obscurity?
         | 
         | Because for the mass consumer market needing decent compute
         | power, there is only ARM and x86-64 left, everything else has
         | gone downhill in actual usage - and ARM is way easier to
         | implement with a lot more vendors available than the x86-64
         | world which is basically Intel vs AMD.
         | 
         | The only competition that remains is Loongson for Chinese
         | government purposes, but no one outside of China and maybe
         | Russia will touch that stuff voluntarily.
        
           | Dracophoenix wrote:
           | What about OpenPOWER? It's held its own in the supercomputer
           | race and I don't think IBM is going to stop using it anytime
           | soon.
        
             | mschuster91 wrote:
             | The POWER architecture family, since the Apple migration to
             | x86 many years ago, is only relevant for supercomputers and
             | mainframes which is why I didn't include it in the list.
        
           | ClumsyPilot wrote:
           | Russia has it's own CPU, Elbrus, which is slow, features x86
           | emulation and VLIW architecture (i think).
           | 
           | It's meant to be used in areas of critical infra and national
           | security, every major nation that is not joint with US at the
           | hip is thinking or planning chip independance.
           | 
           | Otherwise your economy could be rouined because Donald Trimp
           | 2 had too much cocaine in the morning and tweeted something.
        
         | Symmetry wrote:
         | Arm was one of the CISCiest of the RISC processors at a happy
         | medium in instruction complexity that gave them all the
         | simplicity of regular sized instructions while still getting
         | the job done in fewer instructions than a more ideological RISC
         | ISA.
         | 
         | Some in depth look at various features here:
         | 
         | https://userpages.umbc.edu/~vijay/mashey.on.risc.html
         | 
         | Also, getting the job done with fewer instructions meant
         | requiring less RAM in embedded roles where it thrived before
         | entering the market from below in classic disruptive innovation
         | style, the same way that x86 entered the server market. The
         | other RISCs were mostly high end workstation or server chips
         | suffering from low volumes. I actually ported some software
         | from an SGI MIPS box to x86/Linux once. It was a nice system
         | and I see why people liked it but it just couldn't keep up.
        
       | drumhead wrote:
       | If SoftBank want to maximize their return then they'd probably do
       | best to list ARM in the US. There's no way they'd get the crazy
       | valuations you seen on NASDAQ on the LSE. It's why so many UK
       | tech companies IPO in New York. They don't seem to get
       | particularly excited about tech in London.
        
         | ccity88 wrote:
         | That's because a lot of these ""tech"" companies are just other
         | business models in disguise. My especially favourite are the
         | unsustainable business model food delivery apps like Deliveroo
         | and JustEat, or the retail apps that are classed as tech for
         | some reason like online consumer brands such as Victorian
         | Plumbing and whisky seller Artisanal Spirits. It's clear to me
         | that IPO's are no longer about long term equity, and more about
         | short term gambling. This is especially true when you have both
         | US and UK markets actively trying to attract more retail
         | investment, just to swindle the public out of more money. Until
         | we see a radical shift in the way we think about and measure
         | the performance of companies, IPO's and equity markets will
         | continue to be a wild ride.
        
           | martinald wrote:
           | JustEat isn't unsustainable. They are profitable (pretty
           | wildly so until they started offering their own delivery
           | riders to grow to outlets which don't have drivers -- which
           | has started hitting margins).
           | 
           | Deliveroo much less sustainable.
        
       | reilly3000 wrote:
       | Soooo back on the LSE or?
       | 
       | It was such a hot stock in 2014-15. Softbank kinda bought it at
       | the peak. Still, Apple has proven ARM on the desktop is
       | phenomenal, and Ampere has done the same in the datacenter. Both
       | have swiftly made compiler support accelerate dramatically. I
       | would love for my next desktop to be arm-based, and it would be
       | great if it didn't NEED to be a mac. Broad adoption of ARM would
       | be a huge win for sustainability. I'm bullish on their business,
       | even if their business model isn't vertically scalable.
       | 
       | I think that RISC V also has a bright future, but its still a bit
       | far out before its a viable competitor. Still there have been
       | some things that look really promising such as what is coming out
       | of SiFive:
       | 
       | https://www.sifive.com/press/sifive-raises-risc-v-performanc...
       | 
       | And Intel just announced a $1B fund for companies building on
       | their Open Foundry RISC-V alliance.
       | https://www.tomshardware.com/news/intel-1b-fund-risc-v
       | 
       | Big things are happening for small instruction sets... watch this
       | space.
        
         | adrian_b wrote:
         | It was said that Softbank wants to launch the IPO on NASDAQ, so
         | it seems that it will not go back to LSE.
        
         | tjoff wrote:
         | The thing that stands out about ARM is that the user has less
         | control of the hardware. The manufacturers try and succeed in
         | keeping an extremely closed ecosystem.
         | 
         | Why would you want that? The Intel+AMD duopoly seems like
         | nirvana compared to the Ampere and M1.
         | 
         | In fact, Ampere and M1 are a hint of the most dystopian future
         | of computing I can imagine.
        
           | kmeisthax wrote:
           | Uh... M1 (at least when Mac-fused) isn't actually locked-
           | down. You _do_ have to jump through a few hoops to boot
           | modified kernels[0], but it 's a reasonable level of security
           | for a chip primarily intended to go into laptops. There's an
           | ongoing effort to reverse-engineer the M1 and port Linux to
           | it[1], which has actually gone really well.
           | 
           | There's also plenty of ARM hardware out there that really
           | doesn't bother with lockdowns. Raspberry Pi, for example,
           | will happily boot whatever you put on the SD card[2]. There's
           | also plenty of other dev boards and chips that are similarly
           | not locked-down. The reason why people think of ARM as "more
           | locked-down" is because it's more often used in locked-down
           | hardware, but there's no architectural requirement for it to
           | be this way.
           | 
           | The _real_ big problem with ARM is that every chip is very
           | different from one another. SoC designers have a habit of
           | reassigning addresses and IDs on every new chip, with no
           | thought towards backwards compatibility. So even if an ARM
           | chip has no technical protection against third-party
           | operating systems, any Linux kernel you build is unlikely to
           | boot unless the SoC vendor has bothered to upstream support
           | for it. Ironically, Apple is one of the few ARM vendors that
           | actually does maintain backwards compatibility where
           | feasible.
           | 
           | [0] The first admin account is granted possession of a local
           | signing key that lets that user sign kernels. This means that
           | you need to be able to log into that account under macOS in
           | order to install Linux - evil maids need not apply.
           | 
           | [1] Legend has it that if you say "M1" three times in a
           | HackerNews comment, you'll summon the primary developer of
           | Asahi Linux.
           | 
           | [2] You _do_ have to provide a GPU boot blob; no clue if
           | there 's a project to reimplement that.
        
             | floatboth wrote:
             | > no clue if there's a project to reimplement that
             | 
             | There was! And it even booted Linux in some capacity:
             | https://github.com/christinaa/rpi-open-firmware
             | 
             | > every chip is very different from one another
             | 
             | Eh, the usual embedded SoCs are not _that_ different from
             | each other -- ARM GIC, ARM timer, lots of Synopsys
             | Designware crap for SDMMC /XHCI/PCIe/etc.
             | 
             | For many SoCs it's totally feasible to make standards-
             | compliant firmware, e.g. for the Rockchip RK3566 there is
             | https://github.com/jaredmcneill/quartz64_uefi
             | 
             | And SoCs from the networking world (Marvell, NXP) are
             | typically supported by upstream EDK2.
        
           | perfopt wrote:
           | This has nothing to do with ARM. Unlike the PC there is no
           | standard for system architecture (including boards). ARM
           | based designers like Qualcomm, NVIDIA etc can choose to have
           | their own board and system architecture. For example, they
           | can boot of any memory location or lock the user out of using
           | an exception level like EL3/EL2 etc. That is why the
           | ecosystem looks closed. Nothing stops a SoC designer from
           | giving complete access to hardware.
           | 
           | BTW - any SoC designer that uses RISC-V can do the same.
        
             | tjoff wrote:
             | ... and as long as that remains true it is the most user
             | hostile general purpose platforms we've come up with.
             | 
             | It should not be celebrated. Or we will fix the mistake
             | that is the PC forever.
        
             | lizknope wrote:
             | There are standards like the Arm Server Base System
             | Architecture but companies don't have to follow it. Most of
             | the ARM servers are custom things for big datacenters. As
             | you said the smaller systems like phones and other embedded
             | systems have their own boot systems and memory layout etc.
             | 
             | https://en.wikipedia.org/wiki/Server_Base_System_Architectu
             | r...
             | 
             | https://developer.arm.com/documentation/den0029/latest
        
               | floatboth wrote:
               | In the server space, there is no good reason to do weird
               | unusual things - even e.g. the "custom" AWS hardware is
               | as standards-compliant as possible (if you look at the
               | ACPI tables on an a1.metal instance, you'll only find an
               | AMZNxxxx device for the PCIe host controller, and that's
               | only because Synopsys Designware IP sucks^W has a stupid
               | hardware bug related to filtering that requires a little
               | workaround quirk)
        
           | [deleted]
        
           | andrepd wrote:
           | Can you elaborate? I don't understand what you mean.
        
           | klelatti wrote:
           | Any architecture that forces something like the Intel
           | Management Engine on users is closer to dystopia than
           | nirvana.
        
             | als0 wrote:
             | Absolutely. Whether it's ARM-based or RISC-V, nothing will
             | stop high-end SoC vendors from developing closed hardware
             | blocks or firmware, especially if they have customers from
             | the DRM space (CA vendors).
        
           | als0 wrote:
           | > In fact, Ampere and M1 are a hint of the most dystopian
           | future of computing I can imagine.
           | 
           | OK I'll bite. What aspect of Ampere is locked down? They are
           | nothing like the bad closed-source hacks that we see in small
           | development boards.
        
             | tjoff wrote:
             | I apologize. I confused Ampere with Amazon's Graviton.
        
               | floatboth wrote:
               | AWS offers Graviton instances in a bare-metal way too, so
               | you can see for yourself what the SoC offers. It's quite
               | clean, there is a Designware PCIe filtering quirk (same
               | as on e.g. the Marvell Armada8k) but other than that it's
               | SBSA-style UEFI+ACPI. Very standard system.
               | 
               | In terms of firmware openness, yeah, you don't get the
               | firmware source, but you don't get to touch the machines
               | physically either so you wouldn't have a chance to run a
               | custom build anyway :D
               | 
               | (While Ampere Altras are supported by upstream EDK2, have
               | fun)
        
         | peanuty1 wrote:
         | Softbank would be stupid to list on the LSE.
        
       | sekh60 wrote:
       | Good, we need more players, not less.
        
         | odiroot wrote:
         | *fewer.
         | 
         | Sorry had to do it.
        
         | lunfard000 wrote:
         | I didn't like much this but having ARM in the hands of
         | financial institution which doesn't have any motivation to
         | invest in the technology doesn't seem any better (and probably
         | doesnt understand/doesnt care about it). In the other hand,
         | Nvidia have a good track record creating good products.
        
           | karmasimida wrote:
           | Well money speaks, who would own them? The ones actually are
           | willing to pay the price.
           | 
           | It is not other people's say unfortunately.
        
           | einpoklum wrote:
           | > Nvidia have a good track record creating good products.
           | 
           | And a bad track record of preventing interoperability and
           | cross-vendor standardization, to lock customers in.
        
           | shmerl wrote:
           | Nvidia also has a long track record of anti-competitive
           | behavior. So it's a good thing they didn't get ARM.
        
             | chasil wrote:
             | There is nothing to prevent NVidia from buying stock. A lot
             | of stock.
        
               | shmerl wrote:
               | Shouldn't be nothing, otherwise anti-trust has some major
               | hole.
        
             | snvzz wrote:
             | >So it's a good thing they didn't get ARM.
             | 
             | It doesn't matter, as the damage is done.
             | 
             | Once the industry caught a whiff of NVIDIA's intent to
             | purchase ARM, they looked for alternatives. That's RISC-V.
             | 
             | Today, it's been years and the RISC-V efforts within the
             | industry have advanced considerably. These won't be dropped
             | now, irrespective of ARM's fate.
        
           | [deleted]
        
           | p1necone wrote:
           | NVidia has a track record of creating good products, but all
           | proprietary and with closed source firmware/drivers. And lots
           | of arbitrarily software locking features to extract more
           | money from different market segments.
        
             | zinekeller wrote:
             | > And lots of arbitrarily software locking features to
             | extract more money from different market segments.
             | 
             | This is the cultural difference between ARM and Nvidia.
             | 
             | ARM does care enough about their IP that you'll need to pay
             | them for ARM's effort to develop their IP, but beyond that
             | they will not restrict you unless it'll put ARM into legal
             | trouble (basically export restrictions). Hey, you could get
             | everything now with a one-time license payment if you are
             | willing to do that. It's not FSF open, but it's certainly
             | better than a lot of hardware companies.
             | 
             | Nvidia is trying to extract everything into each pipeline.
             | You want to use their hardware? You have to agree to only
             | use this to precise conditions that is purely for market
             | segmentation, which conflicts with ARM's culture.
             | Compounding this with the fact that almost all acquisitions
             | done by Nvidia that was more open was closed down (try
             | talking to Nvidia about Mellanox), if the ARM acquisition
             | proceeded, it'll be a bad day for everyone else.
        
               | lunfard00 wrote:
               | That is good for Samsung/Qualcomm/Mediatek/Apple, but
               | let's be honest, it is a failure as a business. Despite
               | of being used on pretty much 100% of all smartphones'
               | SoC, they barely make any money. Also, their designs are
               | lagging behind, M1 and probably Nuvia are example of
               | that.
        
               | dijit wrote:
               | I think their designs are meant to be lagging, M1 isn't
               | "just better" it's a lot more about media encoding and
               | packing more types of cores together, which while
               | innovative is not what ARM should be doing.
               | 
               | ARM makes prototype designs that you can extend, M1 is an
               | absolute success of that model.
               | 
               | Regardless: you say they've failed as a business, your
               | metric is how much they earn from being nearly
               | everywhere.
               | 
               | I would pointedly disagree: they're everywhere, that's
               | success, they're everywhere and profitable. There's
               | absolutely no need to rent seek... this is unsustainable
               | capitalist thinking.
               | 
               | They're able to innovate and turn a profit with their
               | "modest" income, why do you need them to do more than
               | that? How do you know they would do better with more
               | money?
               | 
               | Intel (yes, apple to oranges) has many orders of
               | magnitude more money, but most of it goes into
               | bureaucracies.
               | 
               | See also: Microsoft, Oracle
        
               | zinekeller wrote:
               | In support of this accurate comment, I'll repeat this
               | assertion: Not all people are wealth maniacs.
        
               | arwineap wrote:
               | I agree with your comment
               | 
               | Do you think that once they IPO pressure from their
               | stockholders will cause rent seeking behavior? Even if
               | they sold to nvidia frankly.
        
               | ClumsyPilot wrote:
               | A: "we grew to billions of dollars without ripping off
               | our customers"
               | 
               | B: "it is a failure as a business. If you employed
               | underhand tactics you could be even bigger!"
               | 
               | This is the phylosophy that gives us DRM on cars, 100
               | page lisence agreement with TVs, and fraud on wallstreet.
        
               | klelatti wrote:
               | > but let's be honest, it is a failure as a business.
               | 
               | Obviously not true, but I can see how some might think
               | this if their main comparators are companies that get to
               | $1trn valuations in 30 years. Not every company can or
               | should be a FAANG.
        
               | p1necone wrote:
               | Imo the poor state of the GPU market competition-wise is
               | the only way NVidia is able to get away with this,
               | otherwise competitors would just eat their lunch by doing
               | exactly the same thing without the arbitrary market
               | segmentation.
        
               | lmm wrote:
               | NVidia are legitimately good at what they do, it's not
               | like Oracle where all the money comes from milking the
               | licensing arrangements.
        
               | zinekeller wrote:
               | I'd definitely agree on that though, Nvidia is really
               | good on what they're doing, just disappointed that they
               | don't view the open-source community as a positive.
               | 
               | F*** Oracle definitely, they can't even bother to have a
               | proper SystemD service on systems which uses SystemD,
               | relying on scripts that are definitely not redeeming
               | them.
        
             | dnautics wrote:
             | > And lots of arbitrarily software locking features to
             | extract more money from different market segments.
             | 
             | To be fair, AMD does super annoying lock in/binning things
             | too, though not with software locking.
             | 
             | For example, there was a Radeon that would have been a
             | crazy awesome server rack mounted GPU for Deep learning 4U
             | blades. You couldn't put it in a server because it was
             | mounted on a chassis that was 4mm too large for PCI spec.
             | 
             | (Btw I hate hate hate Nvidia so this is not pointless
             | whataboutism)
        
               | paulmd wrote:
               | AMD is also moving towards proprietary interconnects for
               | their add-on cards that provide higher performance links
               | than their competitors are allowed to use. And they won't
               | license them to their competitors of course - it's a "set
               | bonus" if you buy all AMD. It's funny because people were
               | panicking about Intel doing exactly that, and when AMD
               | does it, crickets.
               | 
               | They also have moved to locking their CPUs to the
               | motherboards, to restrict second-hand sales of surplus
               | CPUs/etc. So far it's only locked to the brand, so you
               | can put it in any Dell system but _only_ a dell system,
               | but it 's still sufficient to cause a huge amount of
               | headaches for the surplus sector. I was looking at some
               | cheap Epyc 7402Ps on ebay until I saw... "locked to dell,
               | only runs on Dell". Welp. And the other cheap listing, is
               | that one locked too? Who knows, and that's the point AMD
               | is going for, they just have to inject enough uncertainty
               | to change consumer behavior. Most people aren't going to
               | be willing to trace the provenance of a used CPU, they
               | will just pay 20% more for a new one. A limited number
               | will be sold as complete systems, but as the market
               | shrinks and people stop considering secondhand purchases,
               | eventually they will just be thrown in the trash. Mission
               | accomplished.
               | 
               | And that's coming for consumer CPUs too. It's already
               | here for AMD's "ryzen pro" desktop line, it won't be long
               | until it hits walmart prebuilts too.
        
           | teruakohatu wrote:
           | > Nvidia have a good track record creating good products.
           | 
           | What incentive would Nvidia have to develop new ARM features
           | that would assist competitors in competing with them?
           | 
           | The Fujitsu's A64FX Processor for example somewhat competes
           | with Nvidia datacenter GPUs. What incentive would Nvidia have
           | to continue to develop the Arm Scalable Vector Extension?
           | 
           | The only good thing from this sale would be the pivot to
           | RISC-V.
        
             | paulmd wrote:
             | > What incentive would Nvidia have to develop new ARM
             | features that would assist competitors in competing with
             | them?
             | 
             | > The Fujitsu's A64FX Processor for example somewhat
             | competes with Nvidia datacenter GPUs. What incentive would
             | Nvidia have to continue to develop the Arm Scalable Vector
             | Extension?
             | 
             | "the enemy of my enemy is my friend".
             | 
             | the more R&D that goes into the ARM ecosystem, the tougher
             | things get for x86. At the end of the day, all that R&D
             | spending is making NVIDIA's position stronger, it's a force
             | multiplier for their own efforts.
             | 
             | I fundamentally don't understand why anyone would think the
             | ARM acquisition was about anything other than making Jensen
             | kingmaker over one of the two most important processor IPs
             | in the world - and he gains absolutely nothing by becoming
             | king and then slaying all his subjects. That would be an
             | amazingly shortsighted decision from one of the most far-
             | sighted tech CEOs in the business.
             | 
             | Selling some more Tegras is peanuts in comparison and that
             | bump would never last in the long term. The money is in
             | Qualcomm and Fujitsu and IBM's R&D budgets working in
             | synergy with your own, and in the ability to leverage the
             | ARM licensing model to push CUDA into the last places it
             | hasn't reached.
             | 
             | The fact that NVIDIA was even making this offer at all
             | pretty much means they were looking at loosening up their
             | IP licensing IMO. As a black box, sure, but I don't see a
             | world in which NVIDIA would buy ARM and either not license
             | GeForce as the graphics IP, or would choose not to license
             | ARM at all ("selling a few more Tegras is not worth $40b").
             | If you accept those two givens, then NVIDIA would have had
             | to provide GeForce IP as a black-box SIP license.
        
             | OldTimeCoffee wrote:
             | The A64FX has way worse performance per watt than an AMD
             | EPYC and an A100. The A64FX's density per U is higher, so
             | you can get a lot more cores in the same datacenter, even
             | if the TFLOPS/watt is far worse.
             | 
             | For example, if you look at the TOP500, #1 (A64FX) gets
             | about 14.78 TFLOP/watt, #5 (EPYC/A100) gets 27.37
             | TFLOP/watt. Most of the A100 based solutions are similar
             | performance per watt. Nvidia is already beating ARM in
             | power efficiency. This looks closer to the 3dfx acquisition
             | from Nvidia's prospective.
        
             | lunfard000 wrote:
             | Money? like Samsung selling their chips to Apple. Nvidia
             | have a lot of proprietary stuff which allows them to get
             | away even with inferior hardware. Nvidia will prob lose the
             | AI datacenter market anyways, customs asics will just use
             | RISC-V if Nvidia try to stop them.
        
               | bayindirh wrote:
               | Nvidia doesn't care about secondary money. They're all
               | about integrating stuff and denying others to do so.
               | 
               | Nvidia is a castle because of the moats they've built.
               | Not because they're leaps and bounds ahead in terms of
               | silicon and technical wizardry. They shunned OpenCL,
               | they'll probably shun Vulkan for GPGPU and make sure that
               | people are locked to CUDA and its ecosystem. They have no
               | intention to play fair.
               | 
               | We're going to see how Mellanox will evolve under their
               | command.
        
               | lunfard000 wrote:
               | wasn't OpenCL a mess even on AMD cards and isnt it almost
               | deprecated?* And Nvidia's OpenGL drivers on windows are
               | way better than AMD's. I dont like Nvidia especially
               | after all the error 43 bullshit, but they are competent.
               | Now ARM is going public, wont that make things even
               | worse?
               | 
               | [0]:https://www.reddit.com/r/realAMD/comments/qujwas/amd_
               | drops_o...
        
               | paulmd wrote:
               | > They shunned OpenCL, they'll probably shun Vulkan for
               | GPGPU
               | 
               | this comment is factually untrue and anyone can check it
               | for themselves.
               | 
               | https://en.wikipedia.org/wiki/OpenCL#Conformant_products
               | 
               | https://en.wikipedia.org/wiki/Vulkan#Intel,_Nvidia_and_AM
               | D
               | 
               | it would be absolutely insane not to support either of
               | those features. An absolute shit-ton of games use Vulkan
               | these days, there is zero chance of that being deprecated
               | in any timespan not measured in decades. Everyone is
               | still supporting OpenGL after all, and that's like what,
               | an early 90s API?
               | 
               | there is a larger point to be made here about some of the
               | reflexively negative responses people have when the
               | N-word is brought up. There are certainly criticisms you
               | can make of NVIDIA, but people have this intense and
               | reflexively negative emotional response that tends to
               | slide these discussions into flamewar territory.
               | 
               | I know I'm about to hear about how Linus gave them the
               | finger (cause he's a totally balanced and wholesome
               | person), but providing a closed-source linux driver and
               | not supporting wayland (which I think they did eventually
               | anyway?) aren't the end of the world like people make
               | them out to be. Pick the product that fits your needs, if
               | not move on, you don't need to become emotionally
               | attached and you can keep your positions fact-based.
        
               | bayindirh wrote:
               | > this comment is factually untrue and anyone can check
               | it for themselves.
               | 
               | I agree that it's my mistake, however there was a gap
               | between this support periods and levels, and I've been
               | burned by nVidia's own driver on an nVidia 800 series
               | card. It's not out of spite or prejudice. I stand
               | corrected, but my experience also stands. Also nVidia's
               | practices for treating technologies they don't like is
               | still valid.
               | 
               | Also, being compatible doesn't mean that these
               | technologies are first class citizens on the
               | driver/hardware level, and they may not be allowed to use
               | the card up to its full potential.
               | 
               | > it would be absolutely insane not to support either of
               | those features. An absolute shit-ton of games use Vulkan
               | these days, there is zero chance of that being deprecated
               | in any timespan not measured in decades. Everyone is
               | still supporting OpenGL after all, and that's like what,
               | an early 90s API?
               | 
               | There's support and there's support. I'm not talking
               | about games and graphics stuff. I was doing some research
               | about nVidia's "Vulkan Compute" support, and seen this:
               | 
               | "Vulkan compute on AMD and Intel might be okay but we
               | already know of ways Nvidia puts the clamp on Vulkan
               | compute (doesn't make use of multiple DMAs for transfer)
               | and given their history with OpenCL and the vested
               | interest they have in developers preferring CUDA, they're
               | really not to be trusted." [0][1]
               | 
               | The guy writing seems to know what he's talking about
               | (reading about the history gives a lot of nice low level
               | details about how these things work), and this is what I
               | was exactly saying about "Ditching Vulkan Compute in
               | favor of CUDA, like OpenCL". "Yeah, it's supported, but
               | it might not be fast, sorry."
               | 
               | > there is a larger point to be made here about some of
               | the reflexively negative responses people have when the
               | N-word is brought up. There are certainly criticisms you
               | can make of NVIDIA, but people have this intense and
               | reflexively negative emotional response that tends to
               | slide these discussions into flamewar territory.
               | 
               | I'm personally no fan of flamewars. I also don't like to
               | disseminate wrong information knowingly (see above).
               | Also, I work in a HPC center where we use nVidia
               | hardware, and personally develop scientific software. So,
               | I'm not distant to either tiers of nVidia hardware. So,
               | maybe not having prejudice about people one's replying to
               | the first time is a good thing, no?
               | 
               | > I know I'm about to hear about how Linus gave them the
               | finger (cause he's a totally balanced and wholesome
               | person)...
               | 
               | No, you're not.
               | 
               | TL;DR: You can't write multi-vendor, GPU acceleration
               | code which uses every card to its highest potential, even
               | if there's standards. You need to write at least two
               | copies of the code, one being CUDA. Why? nVidia doesn't
               | like other technologies to work as fast on their cards.
               | That's it.
               | 
               | [0]: https://www.reddit.com/r/vulkan/comments/jwhnfe/comm
               | ent/gcq5...
               | 
               | [1]: https://www.reddit.com/user/mb862/
        
             | soapdog wrote:
             | Be aware that Apple is a co-founder of ARM and probably has
             | some perpetual license to the IP. They don't need ARM at
             | all at this point.
        
       | na85 wrote:
       | >ARM to IPO
       | 
       | I'll be looking to pick up some shares as a long-term investment.
       | I think ARM is one of the best things to happen to computing, and
       | anything that threatens the x86 monoculture/hegemony is a good
       | thing in my view.
        
         | HHC-Hunter wrote:
         | Honestly at this point, any big tech IPO is just a license to
         | print money.
        
           | nly wrote:
           | Might not be that way when they go public a year from now
        
           | odiroot wrote:
           | Didn't work that well for Cloudflare, Github, Coinbase.
        
             | urmish wrote:
             | Can you elaborate? All three seem to have done well.
        
               | odiroot wrote:
               | My bad. I meant Gitlab.
               | 
               | Cloudflare reached 212 in November. Now it's down to 109.
               | 
               | Gitlab reached 125 in November. Now down to 73.
               | 
               | Coinbase was at 342 in November. Now it's 203.
        
           | PedroBatista wrote:
           | The printer will start to run out of paper in a few months.
           | 
           | The companies that have their own invoice printer will "win",
           | the others will suffer.
        
             | thrwyoilarticle wrote:
             | It's been months for years
        
               | baq wrote:
               | pay attention. it's already started.
        
               | PedroBatista wrote:
               | This time is based on inflation and the Fed increasing
               | borrowing rates. Money managers already started to move
               | their positions to stocks that fare well when things cool
               | off.
        
         | boramalper wrote:
         | > x86 monoculture/hegemony
         | 
         | You mean the PC _standard_?
         | 
         | I love ARM and the power-efficient mobile devices it enabled in
         | the past two decades. That being said, I am deeply concerned
         | with the lack of coherent hardware standards in ARM devices
         | causing fragmentation and necessitate custom kernels, ROMs, and
         | firmware.
         | 
         | If it weren't for PC, Linux might have died long ago.
        
           | sanxiyn wrote:
           | Well, ARM has SBSA standard, and it seems to work well.
        
             | ClumsyPilot wrote:
             | Coupd anyone explain how this works, are we any closer to
             | the dream of being able to boot generic Ubuntu image on a
             | random ARM device like you can with x86?
        
               | fredoralive wrote:
               | It's a standard specification for ARM server hardware /
               | memory maps / firmware / etc, so operating systems should
               | be interchangeable on it. Doesn't have a specifically
               | consumer orientated equivalent though.
               | 
               | Its a bit like the way you need more than an x86 CPU, you
               | need an "IBM PC Compatible" system[1] with various buses
               | and peripherals in the right memory locations, BIOS/UEFI
               | firmware etc. for generic PC OSes to work. SBSA
               | standardises something like an equivalent of an "IBM PC"
               | for ARM Servers.
               | 
               | [1] Or whatever you would call it nowadays, as legacy
               | BIOS booting is fading away modern systems might not
               | count as that.
        
         | jimbob45 wrote:
         | >x86 monoculture/hegemony
         | 
         | There are more ARM cores in the world by multiple orders of
         | magnitudes at this point. ARM is the bully now, not Intel
         | anymore.
        
       | ksec wrote:
       | It sort of make sense for Nvidia's shareholders. The initial
       | offering for ARM was only worth $38.5bn, which was already
       | expensive due to SoftBank initial purchase price and not wanting
       | for a loss. But at Nvidia's peak this deal was worth " _$87bn_ ".
       | For a company that makes less than $2B in revenue and at best
       | ~$300M in Operating Income. Remember this isn't something you can
       | buy and milk the crap out of other market players. "Not a very
       | British way of doing business" is A Direct Quote from ARM. (
       | Edit: Because of perceptual licensing agreement, for those
       | unaware of how ARM business model works )
       | 
       | It didn't make sense how ARM was worth $22bn in 2016 on LSE, that
       | has a PE100+ when I cant see how it could double its Net profit
       | in the next 10 years, with a _saner_ valuation of P /E 50. It
       | make even less sense to me when Softbank bought it for $32bn.
       | Didn't make any sense when Nvidia want it for $38.5bn, and later
       | at $50bn+.
       | 
       | Now we are back to square one, how many investors, in the open
       | market are willing to buy ARM's stock at a valuation of, let say
       | the same $32bn as Softbank initially paid? Roughly P/E 100,
       | assuming they managed to grow ARM business from 2018 at ~$220M
       | operating income to $300M in 2021. I much rather bet on Intel if
       | I had the money.
       | 
       | And of course many on HN will think ARM is worthless because the
       | future is going to be the Riscy Silver Bullet.
       | 
       | Disclosures: I do not currently hold any stocks or Mutual Funds,
       | Indexes and other financial instrument.
        
         | JohnJamesRambo wrote:
         | Your disclosure intrigues me. What do you own?
        
         | turminal wrote:
         | By buying ARM the owner gets control over an architecture that
         | many describe as "the future of computing". That's much more
         | valuable than whatever money ARM makes.
        
           | lrem wrote:
           | And if that control becomes too tight, RISC-V takes it place.
        
             | pm90 wrote:
             | Let's be real. ARM got a chance because it excelled in a
             | very specific use case: low power. Unless RISC-V
             | differentiates itself in a significant way, it won't
             | replace ARM.
        
               | klelatti wrote:
               | RISC-V seems to me to have two major opportunities.
               | 
               | - Where a free ISA allows innovation and experimentation
               | in a way that Arm would not permit.
               | 
               | - Where companies can shave cents off mass market
               | products due to lower licensing fees.
               | 
               | Will RISC-V replace Arm in your smartphone though - seems
               | like a big ask at the moment.
        
               | mmastrac wrote:
               | Google maintains two parallel Android platforms right
               | now, so the idea of porting everything over to a third is
               | not _too_ far off. There's a lot of effort in getting JIT
               | up-to-speed on RISC, but most everything else is a
               | recompile away.
        
               | monocasa wrote:
               | And JIT can come in later. But definition it's making
               | runtime decisions on code generation, so being supported
               | by optional extensions isn't the end of the world.
        
               | klelatti wrote:
               | I'm old enough to remember Intel throwing billions at
               | getting x86 into smartphones.
               | 
               | Just because there is a port available doesn't mean the
               | hardware and ecosystem will follow.
        
               | unfocussed_mike wrote:
               | Whether it'll make it into a phone is a whole other
               | matter, but there has been at least one RISC-V port of
               | AOSP:
               | 
               | https://www.xda-developers.com/android-risc-v-port/
        
               | chasil wrote:
               | ARM also addressed code density with Thumb, which
               | required licensing Super-H IP.
               | 
               | Then AArch64 was designed very late, but seems sufficient
               | to have (currently) taken the prize for the top
               | supercomputing architecture.
               | 
               | There is architectural flexibility here, in addition to
               | low power.
        
               | user_7832 wrote:
               | You seem to be knowledgeable about this, so I wanted to
               | ask - is ARM more efficient (perf/watt) than Risk-V? (I
               | know there are lots of factors like frequencies/voltages
               | etc but keeping everything else constant)
        
               | chasil wrote:
               | That is really a loaded question.
               | 
               | ARM bigLITTLE exists to address different efficiencies
               | that are exploited in different runtime states. Is big
               | better than LITTLE? Sometimes yes, sometimes no.
               | 
               | If there is no definitive answer within the heterogenous
               | cores of a single ARM implementation, then how can it be
               | compared to RISC-V?
        
               | user_7832 wrote:
               | Ok, I'll try again.
               | 
               | For the same sized single-core chip (x mm squared),
               | running at the same voltage and same clock speed, on the
               | same manufacturing process node, is there a (significant)
               | difference between ARM and Risk-V?
               | 
               | (I'm assuming that core size, voltages and frequencies
               | are the biggest differences between the big and LITTLE
               | cores. And yes of course this is a funky theoretical
               | question so a theoretical answer is perfectly fine :)
        
               | chasil wrote:
               | The answer (for now) appears to be no. Also consider that
               | ARM will not stand still.
               | 
               | "According to SiFive, it is working on the design of a
               | new processor that will be 50% more powerful, and that it
               | will be able to surpass the Cortex-A78 of ARM."
               | 
               | https://techunwrapped.com/risc-v-starts-to-put-
               | pressure-16-c...
               | 
               | https://news.ycombinator.com/item?id=29418153
        
               | floatboth wrote:
               | The ISA doesn't have _that_ much influence on efficiency
               | (other than, like, x86 's insane-length encoding
               | requiring spending more power on decoding).
        
               | yjftsjthsd-h wrote:
               | "About like ARM but without licensing fees and not
               | controlled by ARM (the company)" could easily be a
               | sufficient differentiator, especially if ARM the company
               | starts acting out.
        
         | belter wrote:
         | You analysis is right on, and I agree with it. I predict
         | however, the IPO will be an enormous success. Predict a
         | valuation in the $40bn to $45bn with tops of $50bn....lets
         | revisit this thread then ;-)
         | 
         | Those facts will:
         | 
         | - Disprove once more that story of the market efficiency/price
         | discovery bullshit,
         | 
         | will also confirm that:
         | 
         | - Benjamin Graham, Value Investing and Warren Buffet strategies
         | were made for other times. The times before we allowed that
         | Central Banks hijack our income streams and personal wealth.
         | 
         | Disclosure: As I write this, I also do not currently hold any
         | stocks, Mutual Funds, Indexes and other financial instruments.
         | Did in the past.
        
           | JohnJamesRambo wrote:
           | The longer I'm in the market the more I realize George Soros
           | was completely correct with his theories on reflexivity.
           | 
           | > Reflexivity theory states that investors don't base their
           | decisions on reality, but rather on their perceptions of
           | reality instead.
           | 
           | Meme stocks, Covid crash, Tesla stock, the SP500 for the last
           | decade, NFTs. None of it is priced correctly because humans
           | are at heart greedy, fearful, irrational. I think the trick
           | is to figure out how to use that to make money.
        
             | reducesuffering wrote:
             | There's quite a bit of academic literature on the long term
             | overvaluation and underperformance of "growth" and
             | especially "small cap growth" stocks, sometimes explained
             | by their popularity as pseudo lottery tickets. Over almost
             | all rolling 25 year periods across the past century,
             | "value" stocks (the X% of the market highest in current
             | earnings, cash flow, etc.) outperform the broader market
             | including these growth stocks. Search "the black hole of
             | investing."
        
           | boppo1 wrote:
           | I think you're right about this IPO, but we could be heading
           | into a very different paradigm with the rate hikes coming.
        
         | justin66 wrote:
         | > I much rather bet on Intel if I had the money.
         | 
         | The FTC objecting to Nvidia and ARM's deal on an antitrust
         | basis [0] makes Arm toxic to Intel and AMD.
         | 
         | [0] https://www.ftc.gov/news-events/press-
         | releases/2021/12/ftc-s...
        
         | jsiepkes wrote:
         | If Activision/Blizzard is worth $65bn to Microsoft for it's IP
         | then $84bn is still a steal for ARM?
        
           | prox wrote:
           | But that was a good investment for its long term
           | Gamepass/Xbox plan. Or are you saying Microsoft can buy it?
        
           | ignoramous wrote:
           | Provided the ARM juggernaut is expected to streamroll Intel's
           | business in the coming decade, this acquisition does make
           | sense for Intel... this could be their Facebook+WhatsApp
           | moment.
        
             | raywu wrote:
             | If Nvidia gets torpedoed by regulators, it's hard to see
             | how Intel stands a chance
        
               | xattt wrote:
               | Intel has significant experience in managing cross-
               | license agreements (see x86, x64).
               | 
               | This is getting into fantasy chip designer territory, but
               | what are the chances that Intel makes a hybrid x86-ARM
               | chip?
        
             | brokencode wrote:
             | If Nvidia was blocked from acquiring ARM, then I certainly
             | think that Intel would be blocked as well. Plus, Intel does
             | not need to actually acquire ARM to start making ARM
             | processors. For example, Apple has done just fine licensing
             | ARM IP just like everybody else.
        
               | detaro wrote:
               | Intel indeed already is a large ARM licensee (and for a
               | while even was the largest one, funnily enough)
        
               | rswail wrote:
               | To be clear, Apple is not licensing ARM IP "just like
               | everybody else". They have a very different relationship,
               | being a founding shareholder, and then acquiring an
               | "Architecture License" from ARM after also acquiring PA
               | Semi according to Wikipedia.
               | 
               | So Apple Silicon is not the same as someone else
               | licensing ARM IP.
        
               | brokencode wrote:
               | Source? According to Wikipedia, quite a few companies
               | have an architectural license with ARM, including Intel
               | and AMD. Maybe Apple gets a discount?
               | 
               | Apple may have been a founding member, but they don't own
               | ARM, and I'm assuming that ARM still wants to make a
               | profit off of its licenses to Apple.
        
         | please-reread wrote:
         | "perceptual licensing agreement" ? Could you clarify in what
         | sense the agreement is "perceptual"?
        
           | missedthecue wrote:
           | pretty certain he means perpetual
        
         | Nokinside wrote:
         | As I understand it the value for Nvidia came from adding Nvidia
         | GPU IP into the products that AMD sells to customers.
         | 
         | Nvidia would have expanded the market from their own products
         | to licenses.
        
         | actuator wrote:
         | Have their profitability prospects taken a hit because of
         | whatever happened at ARM China?
        
           | ksec wrote:
           | We dont know because Softbank no longer breaks out those
           | number in 2018/2019. But they do give some insight into the
           | level of growth so we could extrapolate from previous year or
           | quarters.
           | 
           | And generally speaking Softbank ( and ARM ) refuse to comment
           | on anything about ARM China.
           | 
           | But that is a good point, it is a potential risk or at least
           | need to be mindful in its valuation.
        
             | klelatti wrote:
             | FWIW Arm still files accounts in the UK (apparently for the
             | Group).
             | 
             | https://find-and-update.company-
             | information.service.gov.uk/c...
             | 
             | Latest is 2020/21. Profits down to PS7m due to higher R&D
             | and other expenses.
        
         | unfocussed_mike wrote:
         | Intel have been ARM licensees and made ARM chips before
         | (StrongARM which they acquired, XScale which they developed).
         | 
         | They've always managed to display ambivalence about it. We
         | should be glad they never owned ARM and hopefully never will;
         | they'd have killed it with indifference.
        
         | honkdaddy wrote:
         | If you don't mind me asking, where do you keep your wealth
         | then? Property? Commodities?
        
           | [deleted]
        
         | ZetaZero wrote:
         | Disclosures: I've closely followed Nvidia for 15+ years, and
         | own stock.
         | 
         | I feel Jensen and Nvidia still, very strongly, wanted to do the
         | deal. The deal increased in value to $87bn only because NVDA's
         | stock price increased that much. The real costs to Nvidia did
         | not increase.
         | 
         | ARM is a legitimate competitor to x86, which Nvidia wanted to
         | control.
        
           | colinmhayes wrote:
           | The real cost to Nvidia is $87bn. Value is denominated in
           | dollars, not nvidia stock.
        
             | ZetaZero wrote:
             | If the value is denominated in dollars, why did the
             | acquisition price go up from 40B to $87B as the price of
             | the stock rose?
             | 
             | From the source:
             | 
             | https://nvidianews.nvidia.com/news/nvidia-to-acquire-arm-
             | for... "The number of NVIDIA shares to be issued at closing
             | is 44.3 million" [this is the pre-split amount]
        
               | [deleted]
        
               | colinmhayes wrote:
               | If I agree to sell you my house in 10 years, and ten
               | years later the house is worth 10x as much, but every
               | other house is only worth twice as much did the value of
               | the deal change?
        
           | RC_ITR wrote:
           | >The deal increased in value to $87bn only because NVDA's
           | stock price increased that much.
           | 
           | I get what you're saying, but in practice, NVDA was
           | essentially issuing x shares to buy ARM. They could do the
           | same thing, sell them, and keep the cash. The rising stock
           | price very much did raise the "real" cost to NVDA, it just
           | wasn't a simple cash charge.
           | 
           | Put alternatively, NVDA basically said to ARM "you're worth
           | x% of our company." While that may be true at one date, a
           | deal struck at the new market cap would be unlikely to come
           | to the same conclusion.
        
             | ZetaZero wrote:
             | Yeah, NVDA could sell the shares on the market, and buy
             | with cash. In practice, selling that many shares tends to
             | cause downward pressure on the stock price. But it is an
             | option.
             | 
             | That said, Nvidia was still trying hard to make the deal
             | work, even at that price. Jensen strongly believed the deal
             | would be worth many multiples of the acquisition cost.
        
         | wbl wrote:
         | ARM licenses are mostly for complete cores and associated IP
         | blocks that work on your process. No reason they can't make
         | RISC-V ones.
        
         | ant6n wrote:
         | But Intel has a P/E of 9.91, they must be teetering on the
         | brink of bankruptcy!
        
           | Wronnay wrote:
           | It's really funny how the market thinks that Intel isn't in
           | the game anymore.
           | 
           | They may not be as energy efficient as M1 or ARM chips but
           | they certainly show that they are still a competition and
           | invest a lot of money to improve their performance.
        
             | unfocussed_mike wrote:
             | The thing is, the market can be right without knowing why
             | it is right.
             | 
             | The market thinks that in some fixed, relatively near point
             | in the future we will look back at now and say "Intel was
             | already hosed, it just didn't know it".
             | 
             | It may be that the market is currently only expressing
             | interest in the hopes of others that this particular future
             | will come to pass, but that is the only way it will.
        
             | freeone3000 wrote:
             | But they really haven't. We've not seen hide nor hair of
             | the new process, only iterative improvements on the current
             | process, and the attempt at big.LITTLE x86-style doesn't
             | seem to have worked out terribly well.
             | 
             | ARM has taken out the low-power market that Atom and
             | Pentium classes were aiming at. AMD APUs have long been a
             | favorite of mid-power devices like gaming consoles and are
             | now a desktop enthusiast favorite as well. The i5/i7 class
             | is outmatched in every metric ($/FLOP, W/$, and W/FLOP) by
             | the Ryzen series. IBM and Azure placed their big chip
             | refresh orders with AMD as well, so the hyperscaler market
             | is in danger. The only place Xeons are still superior is
             | the scientific and high computing space, and Threadripper
             | is making inroads there as well.
             | 
             | Intel still has great sales from existing cashflows and OEM
             | agreements, but if you were buying a computer in 2022, why
             | choose Intel? Why would its customers? I think they're
             | going to have to come up with something new and soon.
        
               | colinmhayes wrote:
               | > The i5/i7 class is outmatched in every metric ($/FLOP,
               | W/$, and W/FLOP) by the Ryzen series.
               | 
               | This isn't really true though. Alder lake performance is
               | better than Ryzen 5x at pretty much all price points.
               | Alder lake's electricity usage is rough, but desktop
               | users don't care. Now ryzen is a year behind intel, and
               | who knows how their next offering will fare, but saying
               | they've outmatched intel in every metric just isn't true.
        
               | paulmd wrote:
               | > and are now a desktop enthusiast favorite as well. The
               | i5/i7 class is outmatched in every metric ($/FLOP, W/$,
               | and W/FLOP) by the Ryzen series.
               | 
               | maybe a couple years ago, at this point Intel is
               | dominating the gaming market, competing in the
               | productivity market despite having fewer cores (i.e. more
               | potent cores), are at least matching Zen3 efficiency
               | (except i9, but you said i5/i7) if not beating
               | (particularly at lower power budgets due to infinity
               | fabric overhead). Ryzen has absolutely lost favor with
               | the enthusiast market due to the significant price
               | increases (in some segments, a 50% increase over last
               | generation) and the refusal to chop prices to remain
               | competitive with intel (justified with "but they can make
               | more money selling Epyc", which is great for them but it
               | doesn't make their products competitive for me as a
               | consumer either).
               | 
               | And AMD has _completely_ abandoned the value market... i3
               | 12100F is listed for $110 at Best Buy (iGPU version is
               | $140), and Intel is in the process of rolling out
               | Celerons for even cheaper rigs (will be nice for HTPC
               | with that iGPU). AMD 's cheapest processor has a $300
               | MSRP and they won't budge on pricing at all given their
               | focus on the server market.
               | 
               | go look at a tech enthusiast forum and nobody is
               | recommending Ryzen anymore. It's overpriced, it no longer
               | has a performance or efficiency advantage (in fact it's
               | rather flopped the other way), and AMD would rather
               | address the server market instead.
               | 
               | this has really shifted in the last 6 months since Alder
               | Lake launched, but really there was a significant niche
               | for recommending 10-series as a budget option given the
               | significant price advantage over AMD. The thing that
               | changed with Alder Lake is that Intel moved back into the
               | performance lead (and matched efficiency) and prices
               | remained the same - leaving them both better and cheaper
               | than AMD. Thing have changed, people don't recommend AMD
               | anymore unless you have a very specific need (like you're
               | buying a 5950X).
               | 
               | Also APUs in particular are rather a flop on desktop. AMD
               | didn't even bother releasing a 7nm APU to the consumer
               | market until... September last year? Up until then it was
               | all 12nm quad-core garbage - and that's GloFo 12nm, so
               | more like Intel 22nm. On top of that, the APUs also had
               | reduced IPC compared to the CPUs of their equivalent
               | architecture (due to less cache). All of the hype around
               | Ryzen was around the non-APU enthusiast chips with no
               | onboard graphics, the APUs were never popular in the
               | desktop segment.
               | 
               | The APUs are nice if you are building a SFF rig with no
               | discrete GPU... but they have a lot of compromises -
               | reduced IPC, PCIe 3.0, and up until September they didn't
               | have any that weren't limited to PCIe 3.0x8 (5000G series
               | moves this to 3.0x16). They have no HDMI 2.1 support, no
               | HDMI VRR support, no AV1 support, and the worst hardware
               | encoder (i.e. Teams videoconferencing quality/etc) on the
               | market. If you really want a gaming-focused SFF rig with
               | iGPU only, they are the best available, but they were
               | never _popular_ , and AMD never really pushed them the
               | way they did the enthusiast chips.
               | 
               | (HEDT is another segment that's been abandoned... AMD
               | still has not released Zen3 processors, it's been 16
               | months now, and who knows whether AMD will try the same
               | "release it for pro but not for consumer" crap again like
               | they did with the APUs.)
        
         | samwillis wrote:
         | Wanted to see where your brilliant phrase "Riscy Silver Bullet"
         | was from so had a google, I think you are trying to start a
         | trend ;-)
         | 
         | > ksec 67 days ago
         | 
         | > The unwritten rule of HN:
         | 
         | > You do not criticise The Rusted Holy Grail and the Riscy
         | Silver Bullet.
         | 
         | https://news.ycombinator.com/item?id=29422032
        
           | gjsman-1000 wrote:
           | Those RISC-V supporters are so annoying. They never seem to
           | understand the difference between an open-source _instruction
           | set_ , versus an open-source _chip_ which anyone can
           | synthesize, versus closed-source drivers for an open-source
           | instruction set which contains closed-source additional
           | instructions.
           | 
           | RISC-V literally has no "openness" advantage over ARM other
           | than that there's no licensing fee. Apple could make a RISC-V
           | chip and use it in their iPhones and it would be just as
           | locked down as their ARM chips.
        
             | stjohnswarts wrote:
             | Yeah as a rust user and believer even I cringe at some rust
             | crusaders, I've seen the same for RISC V as well :(
        
             | miloignis wrote:
             | One is required for the other, though - you're not going to
             | get any good open hardware for a closed ISA, and RISC-V and
             | OpenPOWER seem to be the two shots we've got. We
             | practically need an open ISA to succeed as a prerequisite
             | for open hardware to do the same.
        
               | klelatti wrote:
               | If by open hardware you mean open source chip then yes
               | but I'm not sure that 1. that's a big advantage for users
               | or 2. going to happen at the leading edge of CPU design
               | where most of us actually do our computing. It takes real
               | money to design and test a high performance CPU and (even
               | for RISC-V) an open source ISA does not mean an open
               | source chip.
        
       | sylware wrote:
       | This is weird, when you think that RISC-V is getting more
       | momentum everyday, even with open source CPUs, why 100bn in ARM??
        
       | unfocussed_mike wrote:
       | Good. Though it is a shame they couldn't have done this _before_
       | Softbank acquired them.
        
       | benreesman wrote:
       | My memory might fail me, but I think the compiler wizards were
       | building all the core FB stuff on aarch64 back in like 2014-2015
       | or something.
       | 
       | Someone saw further down the road than I did.
        
         | taffronaut wrote:
         | Your memory is good. The bug to port FB's HipHopVM to aarch64
         | was raised in 2013[1]
         | 
         | [1] https://bugs.launchpad.net/linaro-aarch64/+bug/1099824
        
       | InTheArena wrote:
       | Does anyone believe that this IPO has value, when ARM china has
       | already been stolen and Apple has a perpetual technology license?
        
         | chasil wrote:
         | If ARM debuts all future designs under 10nm, then ARM China is
         | out of the game (for now), unless they want to try to backport
         | to 14. Some useful contract language will also forbid access to
         | ARM's customers.
         | 
         | ARM processors are also in many, many things besides Apple
         | products.
        
       | ekianjo wrote:
       | So now after the IPO, Nvidia can buy a controlling part in ARM or
       | do a hostile takeover.
        
         | gpderetta wrote:
         | it would still need to be approved by regulators.
        
         | ykl wrote:
         | Buying a controlling stake in ARM or a hostile takeover would
         | still trigger the same regulatory vetting that caused the deal
         | to be called off in the first place.
        
       | judge2020 wrote:
        
       | JoachimS wrote:
       | 1.25 BUSD to keep their ARM license. Pretty sweet deal there
       | Nvidia...
        
       | rocketChair wrote:
       | Thank god for that.
        
       | snissn wrote:
       | i only read stories of softbank failures.. are they ok?
        
         | JoachimS wrote:
         | From a pure business perspective, their record looks bad, and
         | may be hard to understand. This article about Softbank may be
         | worth reading.
         | 
         | https://www.bloomberg.com/news/articles/2018-10-21/explainin...
        
       | jiveturkey wrote:
       | > before March 2023.
       | 
       | Why does it take so long? I would be pretty surprised if they
       | aren't already operating with audited GAAP financials, etc etc.
       | Or is the extended date a hedge against market conditions, to
       | avoid having to announce a delay.
        
         | hikingsimulator wrote:
         | An IPO takes a really long time to initiate, draft, and
         | conclude -- from legal due diligences, to investment banking
         | drafts or market scouting, and securing early buyers.
         | Investment banks kind of bid on the right to do the IPO for
         | instance, each offering their own kind of package for ARM to go
         | with.
         | 
         | M&A departments in New York or London must have been (or still
         | be) pulling all-nighters.
        
       | coob wrote:
       | Is it an IPO if they've already previously been public?
        
         | mise_en_place wrote:
         | Yes, that doesn't change anything. Many companies have been
         | taken private that were public, and then went public again.
         | Your choice for going public is either an SPAC or an IPO/DPO.
        
         | Slartie wrote:
         | Maybe we should call it a Secondary Public Offering then.
        
           | iam-TJ wrote:
           | I was just writing something similar after some research when
           | I found this existing thread. Maybe we should refer to these
           | public-private-public carousels as PEPOs (Private Equity
           | Public Offering) ? :P
           | 
           | Pedantic nit: not quite an IPO (Initial Public Offering) in
           | its true sense since the original ARM Holdings was already a
           | _public_ limited company (PLC) before Softbank bought it from
           | its shareholders in 2016. The trading entity and group parent
           | is Arm Ltd, a private limited company formed in 1990 [0].
           | 
           | There is however a currently dormant Arm Holdings Ltd [1]
           | incorporated in 2018 which may be converted to a public
           | company so it would be the first time this legal entity has
           | been publicly listed.
           | 
           | [0] https://find-and-update.company-
           | information.service.gov.uk/c...
           | 
           | [1] https://find-and-update.company-
           | information.service.gov.uk/c...
        
           | kitd wrote:
           | YAPO? "Yet another public offering"
        
             | qeternity wrote:
             | HWGA - here we go again
        
         | parenthesis wrote:
         | Stock market flotation.
        
         | NetBeck wrote:
         | "Returning to the market" were similar headlines when Dell went
         | public again.[0][1][2]
         | 
         | [0] https://www.reuters.com/article/us-dell-ipo-idUSKCN1OR14E
         | 
         | [1] https://www.wsj.com/articles/dell-returns-to-public-
         | equity-m...
         | 
         | [2] https://www.theverge.com/2018/12/28/18159305/dell-stock-
         | mark...
        
         | anshumankmr wrote:
         | I think there is a term for this: Follow-on Public offering
         | (FPO
        
       | samwillis wrote:
       | Hopefully it will end back on the LSE, there was much lamenting
       | here in the UK when SoftBank acquired them. They are one of the
       | UKs biggest tech success, one of our few "unicorns". For them to
       | be be back on the LSE it would be a good signal of strength in UK
       | tech.
       | 
       | I wouldn't be surprised if there is some lobbying going on behind
       | the scenes from the UK government to try and ensure it happens.
       | Some strategic tax brakes or regional investment.
       | 
       | With the governments (somewhat controversial) investment in
       | OneWeb last year they have shown they have a uk tech strategy.
       | Although I think that was Dominic Cummings doing and he's well
       | out of the picture.
        
         | nly wrote:
         | The UK gov is keen for Revolut (another SoftBank investment) to
         | IPO in London as well, but it looks like they're trying to
         | court Americans so they can make a bigger splash there.
        
           | jakey_bakey wrote:
           | Absolutely no chance Revolut lists in London. They're super
           | globally-focused and the founder wouldn't take the loss.
           | 
           | Starling bank on the other hand, is a great prospect. It's
           | still founder-controlled, UK-focused, and would be able to
           | join the FTSE 250/100 quite easily where the S&P is beyond
           | its reach.
        
             | actuator wrote:
             | Why would LSE listing be a loss? Would capital that moves
             | in the US markets have any problem coming to the UK one if
             | they see a good prospect?
        
               | robbiep wrote:
               | This is a bit of a take on the current dynamics -
               | https://www.economist.com/britain/2022/01/29/britains-
               | newly-...
        
         | flipbrad wrote:
         | Does it matter where it IPOs?
        
           | nly wrote:
           | It's a Brexit anxiety thing. If a big boy like ARM goes
           | public in London the PM can wave the flag on TV and say we're
           | world class.
        
             | hardlianotion wrote:
             | It is important with or without brexit.
        
               | rwmj wrote:
               | The most important thing is where are the jobs. Where it
               | lists is of minor concern, except for people desperate
               | for "Brexit wins".
        
             | LightG wrote:
             | Yep, but it's no guarantee ARM will list on the LSE
             | considering recent UK EV maker Arrival crossed the pond for
             | a decent IPO.
        
           | OJFord wrote:
           | For governments, exchanges, indices, certain investors, and
           | economies yes.
        
           | jayflux wrote:
           | Companies like to IPO where there's high volume, and LSE
           | doesn't have much compared to US exchanges. Sadly it's a
           | chicken + egg problem because LSE is left with older, more
           | legacy UK companies, making it less attractive for modern
           | tech companies to list in.
           | 
           | The LSE could really do with this as a boost and to break the
           | cycle. But this will IPO in the US.
        
           | marticode wrote:
           | Not only liquidity but valuation for tech companies are
           | typically better in the US for some reason.
        
         | kmlx wrote:
         | > one of our few "unicorns"
         | 
         | "There are currently 37 private $1b+ businesses headquartered
         | in the UK--a further 14 have exited, whilst 2 are no longer
         | active
         | 
         | 13 UK companies became unicorns in H1 2021--the largest
         | concentration of new unicorns to date"
         | 
         | from: https://www.beauhurst.com/research/unicorn-companies/
        
           | modernpink wrote:
           | A lot of these seem to be consumer retail, e-commerce or
           | housing related which says a lot about the UK economic
           | landscape. Hardly the kind of company ARM would want to be
           | swimming amongst.
        
           | samwillis wrote:
           | True and really it's not a Unicorn as it's been public
           | before.
           | 
           | You inspired me to have a look at how many "Unicorns" are in
           | the US for comparison. Depending on source it's between about
           | 400-480 in the US. So about 12x as many with about 4.8x the
           | population.
        
             | heavenlyblue wrote:
             | Or about 12x as many with 11x GDP.
        
       | flerchin wrote:
       | It's not clear to me, and I'm sure folks here would know. It
       | seems possible that the ARM IPO could end up raising quite a bit
       | less than the Nvidia deal. Couldn't Nvidia buy a majority of ARM
       | shares on the open market, at a discount, with no regulatory
       | oversight?
        
         | klelatti wrote:
         | No. At a certain level of ownership (less than 50%) they would
         | be forced to make a full bid and the regulators would step in
         | again and block.
        
       | inerte wrote:
       | I think it's interesting how selling Arm to Nvidia or going IPO
       | are _wildly_ different and I think SoftBank doesn't mind what
       | happens to the company as long as they get their return. I mean,
       | at the end of the day financiers will finance but if you're Arm
       | employee this must be a pretty wild ride.
        
         | BluSyn wrote:
         | SoftBank is desperate for capital due to recent bad bets. ARM
         | is one of the most valuable assets they have. As for ARM
         | itself, this probably isn't the best path forward, and neither
         | option would even be considered if it weren't for SoftBank's
         | current predicament.
        
           | jakey_bakey wrote:
           | It's weird, according to the FT they only want the capital to
           | finance share buybacks. So, basically, they want to prop up
           | their share price.
        
             | dannyw wrote:
             | yes, that is the core premise of a company.
        
             | HWR_14 wrote:
             | I didn't see that article, but that seems to be a two-step
             | process for SoftBank to sell their shares on the open
             | market without spoiling the market by public ally divesting
             | themselves of shares. They sell new shares, then use the
             | money that generates to buy a percentage of SoftBanks
             | shares.
        
               | selimnairb wrote:
               | This is why financial engineering and ultimately all
               | Money-Money transactions are ultimately nihilistic and
               | boring. Who cares how much money you have if you aren't
               | doing new/innovative/interesting things?
        
             | perfopt wrote:
             | You are right. They want to buy back shares. But it is also
             | true that some of their bets like Didi and Wework did not
             | do well. Also, they have money invested in China which
             | seems stuck (just like many others I suppose).
        
           | rubatuga wrote:
           | People thought blocking this acquisition will result in more
           | competition overall. Unfortunately, letting the stock market
           | control ARMs actions will still lead to anti-competitive
           | actions harming you as a customer. Not sure if blocking the
           | merger will be overall better.
        
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