British semiconductor and software design company, ARM Holdings is being sold to the American graphics chip specialist Nvidia.
The deal values ARM at US$ 40 billion, four years after it was bought by Japanese conglomerate Softbank for US$ 32 billion.
ARM’s technology is at the heart of most smartphones, among many other devices.
Nvidia has promised to keep the business based in the UK, to hire more staff, and to retain ARM’s brand.
It added that the deal would create “the premier computing company for the age of artificial intelligence” (AI).
“ARM will remain headquartered in Cambridge,” said Nvidia’s chief executive Jensen Huang.
“We will expand on this great site and build a world-class AI research facility, supporting developments in healthcare, life sciences, robotics, self-driving cars and other fields.”
UK’s Labour Party had urged the government to intervene to secure jobs and keep ARM’s headquarters in the UK.