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NVIDIA to abandon its ARM Holdings acquisition plans - VideoCardz.com
NVIDIA to drop its bid for ARM acquisition Bloomberg is reporting that NVIDIA is to abandon plans to acquire ARM Holdings. This decision will cost 1.25B USD. NVIDIA faced strong opposition from regulatory bodies in their bid to purchase ARM Holdings, a British company owning the IP of its RISC...
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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.
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.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
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.