SoftBank Grabs 4 Billion Dollar Stake in NVIDIA, Becomes 4th Largest Shareholder

[R-T-B]

NVIDIA has seen impressive growth over the past year in all sectors, and not just the usual ones such as PC gaming. Deep learning, Artificial Intelligence, all these have seen growth with the chip maker presenting some compelling products over the past year.

This growth has apparently garnered some attention from investment group SoftBank, whom have just placed a nice 4 Billion dollar investment in the company in exchange for a 4.9 percent stake. This amount is carefully calculated: It's pretty much the largest amount they can invest without having to seek regulatory approval in the United States. This also makes SoftBank NVIDIA's 4th largest shareholder, and is in line with SoftBank founder Masayoshi Son's plan to become the biggest investor in technology over the next decade.

It's surely a vote of confidence in the chip maker in the most direct language possible: Money. Furthermore, one has to ask if this is not the beginning of more investments from SoftBank in the future.



View at TechPowerUp Main Site

 

[cdawall]

They just invested what amd is worth...

 

[R-T-B]

They just invested what amd is worth...

...That's pretty impressive and yeah, you are correct.

 

[CrAsHnBuRnXp]

They have 4.9bill to spend/invest and I cant even pay my college loans.

 

[Mistral]

They have 4.9bill to spend/invest and I cant even pay my college loans.

Yeah, I sometimes wish I was running a Janapese zaibatsu too...

 

[Fluffmeister]

This news is probably as popular is concrete shoes at a swimming lesson for some of the more.... fanatical here, but there is no arguing Nvidia are firing on all cylinders.

 

[xkm1948]

This news is probably as popular is concrete shoes at a swimming lesson for some of the more.... fanatical here, but there is no arguing Nvidia are firing on all cylinders.

And people wonder why Nvidia has superior technology.

 

[Fluffmeister]

And people wonder why Nvidia has superior technology.

People will of course argue otherwise, but when Nv say they spent 3 billion on Volta's development, they should appreciate pushing technology forward doesn't come cheap.

When you become a company that is celebrated for giving technology away license free, and people get mad paying higher prices.... you're kinda screwed.

 

[chaosmassive]

looking at past Softbank acquisition, looks like sooner or later most biggest company will be swallowed by it

 

[natr0n]

I still remember when softbank made/published games.
https://www.gamefaqs.com/company/73389-soft-bank

 

[RejZoR]

And people wonder why Nvidia has superior technology.

It doesn't. It's just that AMD is repeatedly getting screwed by various things. One of the largest ones being GloFo which repeatedly and consistently can't output good chips. And I bet AMD is bound to them with some stupid contract, I can't explain any other reason why they'd keep on insisting on it while they repeatedly fail them. If AMD had same chips done by someone actually competent, their stuff would be state of the art. They have the tech, they have the designs and every time it's screwed by chip fabricators. I mean, why do you people think NVIDIA NEVER gives a job of making chips to GloFo?

 

[Prima.Vera]

Softbank = THE WORST mobile phone company in Japan. Overly expensive phone contracts, support is pure garbage and always callous, especially for foreigners, jacking up your contract prices with dozen of useless services, etc , etc.

 

[Xzibit]

Softbank could be doing what it did with ARM. buy a % then sell a % to a fund to people that otherwise would not be able to purchase due to scrutiny to open up business opportunities.

 

[R-T-B]

I mean, why do you people think NVIDIA NEVER gives a job of making chips to GloFo?

Possibly because GloFo is an offshoot of AMD?

 

[Shamalamadingdong]

It doesn't. It's just that AMD is repeatedly getting screwed by various things. One of the largest ones being GloFo which repeatedly and consistently can't output good chips. And I bet AMD is bound to them with some stupid contract, I can't explain any other reason why they'd keep on insisting on it while they repeatedly fail them. If AMD had same chips done by someone actually competent, their stuff would be state of the art. They have the tech, they have the designs and every time it's screwed by chip fabricators. I mean, why do you people think NVIDIA NEVER gives a job of making chips to GloFo?

AMD has a long-standing agreement with GloFo because it was part of the deal when they sold off the Fab. The buyer obviously wanted a guarantee of customers and AMD needed the money.
The agreement has recently been amended so AMD still needs to order a minimum amount but can seek other avenues by paying a 'fine' for not meeting the threshold.
Source: http://www.anandtech.com/show/10631/amd-amends-globalfoundries-wafer-supply-agreement-through-2020

Nvidia did use Samsung's 14nm process for their lower tier Pascal cards which is essentially what GloFo uses as their own 14nm wasn't working right. They're practically buying all their process node advances (7nm was bought from IBM for example) which is worrying.

 

[cryohellinc]

Impressive indeed. Damn such SUMS of money.

For us average Joe users, this can only result in better products in the long run. Good stuff!

 

[Basard]

Yeah, I sometimes wish I was running a Janapese zaibatsu too...

Wouldn't have much time to complain about shit on the internet though....

 

[64K]

NVIDIA has seen impressive growth over the past year in all sectors, and not just the usual ones such as PC gaming. Deep learning, Artificial Intelligence, all these have seen growth with the chip maker presenting some compelling products over the past year.

This growth has apparently garnered some attention from investment group SoftBank, whom have just placed a nice 4 Billion dollar investment in the company in exchange for a 4.9 percent stake. This amount is carefully calculated: It's pretty much the largest amount they can invest without having to seek regulatory approval in the United States. This also makes SoftBank NVIDIA's 4th largest shareholder, and is in line with SoftBank founder Masayoshi Son's plan to become the biggest investor in technology over the next decade.

It's surely a vote of confidence in the chip maker in the most direct language possible: Money. Furthermore, one has to ask if this is not the beginning of more investments from SoftBank in the future.



Source: bloomberg.com

 

[Dippyskoodlez]

Whelp time to invest in my espp..

 

[medi01]

...That's pretty impressive and yeah, you are correct.

Uh, no, AMD's mkap is about 11 billion at the moment, so that's less than a half of what AMD is worth.

but when Nv say they spent 3 billion on Volta's development

Bullshit alarm bells should ring.

 

[thesmokingman]

Bullshit alarm bells should ring.

They just send the three Bill's from engineering on it.

 

[R-T-B]

Uh, no, AMD's mkap is about 11 billion at the moment, so that's less than a half of what AMD is worth.

I don't think anyone in their right mind would value them at that though, given their standing debts.

Unless I need to go back to economics class, which is possible.

 

[cdawall]

I don't think anyone in their right mind would value them at that though, given their standing debts.

Unless I need to go back to economics class, which is possible.

I stand by the number I said earlier. Outstanding debt and IP would put them right around 4-5B

 

[ZoneDymo]

I don't think anyone in their right mind would value them at that though, given their standing debts.

Unless I need to go back to economics class, which is possible.

debt is a massively odd thing though, just look at the USA's dept to china, still marching along just fine.

 

[R-T-B]

debt is a massively odd thing though, just look at the USA's dept to china, still marching along just fine.

Performance also needs to be considered. My point is no one would pay their market cap for the company.