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NVIDIA to drop its bid for ARM acquisition

IbizaPocholo

NeoGAFs Kent Brockman

NVIDIA faced strong opposition from regulatory bodies in their bid to purchase ARM Holdings, a British company owning the IP of its RISC (reduced instruction set computer) architectures. After numerous attempts to convince the market and governments that could oppose such a transaction, NVIDIA has allegedly given up the plans, which means that it will have to mark a $1.25 billion loss, money that should be considered a breakup fee.

NVIDIA’s original plan was to pay 40 billion USD for the company. However, the US chipmaker no longer expects this transaction to close.

Nvidia Corp. is quietly preparing to abandon its purchase of Arm Ltd. from SoftBank Group Corp. after making little to no progress in winning approval for the $40 billion chip deal, according to people familiar with the matter.
— Bloomberg
Back in 2020, NVIDIA promised to keep the open-source licensing model of ARM and retain customer neutrality under its wings. The company further reassured to expand research and development presence in Cambridge (UK) where ARM is located. Those promises, however, did not convince the regulatory bodies.

Without the full directing rights to the ARM architecture, NVIDIA’s bid to enter the CPU market may face new obstacles. Although both companies have had strong cooperation in the past, NVIDIA will not have the full right to designate the path for the ARM architecture.

 

mansoor1980

Gold Member
OOF
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Great news, looking forward to SoftBank spinning it off with an IPO. Seems like it will be a solid investment and the money will help accelerate ARM further.
 

Three

Member
Not sure if this is good or bad. Nvidia unlike Intel and AMD don't have APU capability. This would have been their way to get the same capability.
 

BWJinxing

Member
If they do the IPO, hopefully, no rouge activist gets control.

I would rather see a industry consurtum, proposed months ago.

Though it doesn't make sense, how can ARM be bleeding so much, if all I does is design cpus?

I could see patent cost, but all of earth is using them.
 

Three

Member
Consolidation is almost never good in the long run.
That's true, hope this is good new in the long run. Considering AMD bought up ATI and made a good SoC business for itself it just seems almost unfair to block NVidia now though.
 

SF Kosmo

Al Jazeera Special Reporter
That's true, hope this is good new in the long run. Considering AMD bought up ATI and made a good SoC business for itself it just seems almost unfair to block NVidia now though.
ARM is just too ubiquitous in the mobile space. It's already problematic even by itself, let alone when combined with nVidia.
 
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