Rumors recently surfaced that AMD (NASDAQ: AMD) was in advanced talks to acquire peer Xilinx (NASDAQ: XLNX). On the surface, this move may look like little more than a sideshow given rival NVIDIA’s (NASDAQ: NVDA) $40 billion offer to take over SoftBank subsidiary ARM Holdings. For every one share Xilinx shareholders own, they will receive 1.7234 shares of AMD.

Nvidia Corporation (NASDAQ: NVDA) CEO Jensen Huang said Wednesday that while the company's acquisition of rival British chipmaker Arm Ltd. was pricey, the latter's network of customers makes it well worth the cost, Reuters reports.What Happened: Huan made the remark, addressing SoftBank Group Corp (OTC: SFTBY) Masayoshi Son, in a pre-recorded message for the Japanese conglomerate's annual conference “SoftBank World.””I had to pay you an arm and a leg for it,” the Nvidia CEO told Son. “I told you I was going to be the last and highest bidder.”Huang justified Arm's price tag saying that the chipmaker's network of customers made it worthwhile and that he wants to expose those customers to Nvidia's artificial intelligence technology, as per Reuters.Son revealed that he met Huang four years ago at his California home's garden and they talked about Apple Inc (NASDAQ: AAPL) co-founder Steve Jobs and the impact the iPhone had on the “lifestyle of humanity.””I think in the next 10 years, you are the one Jensen [to have a similar impact],” said Son. Why It Matters: In September, Nvidia said it would buy Arm from SoftBank for $40 billion in a stock and cash deal.The deal is under the scrutiny of the United Kingdom government, with Arm CEO Hermann Hauser calling it a “disaster” for Cambridge, the U.K., and Europe.Another potential impediment to the deal is getting the go-ahead from China, which would want to avoid the “nightmare” of a U.S. company owning Arm, according to Sebastian Hou, head of technology research at CLSA.Price Action: Nvidia shares closed nearly 5.8% lower at 505.08 on Wednesday and gained 0.7% in the after-hours session. On the same day, SoftBank OTC shares closed 1.09% lower at $32.68.Photo courtesy: Nvidia Corp. See more from Benzinga * Click here for options trades from Benzinga * Semiconductor Firm Allegro MicroSystems Raises 0M In IPO * Tesla, Amazon, Nvidia May Be 'Extravagantly Priced' But Valuations Are Rational, Investment Firm Says(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

The chief executive of Nvidia Corp said his planned acquisition of Arm from SoftBank Group Corp cost an “arm and a leg,” but that the chip designer’s valuable network of customers made it worthwhile. Japanese tech conglomerate SoftBank announced in September it would sell Arm to U.S. chip designer Nvidia for $40 billion as it builds a cash pile through asset disposal. “I had to pay you an arm and a leg for it,” Jensen Huang told SoftBank CEO Masayoshi Son in a pre-recorded conversation at annual conference SoftBank World.

Nvidia is the leading designer of graphics processing units that enhance the experience on computing platforms. The firm's chips are used in a variety of end markets, including high-end PCs for gaming, data centers, and automotive infotainment systems. In recent years, the firm has broadened its focus from traditional PC graphics applications such as gaming to more complex and favorable opportunities, including artificial intelligence and autonomous driving, which leverage the high-performance capabilities of the firm's graphics processing units.

Dow Jones futures rose modestly late Wednesday, along with S&P 500 futures and Nasdaq futures. The stock market rally came under increasing pressure Wednesday, as stocks sold off on mixed earnings reports, coronavirus cases spurring lockdowns in much of Europe and the looming election. Pinterest (PINS) and ServiceNow earnings offered some hope overnight, giving a lift to several peers. But…