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Friday, December 9, 2022

Nvidia Scraps Their Arm Acquisition

Nvidia’s $40 billion acquisition of Arm has been canceled, according to parent firm SoftBank, citing “severe regulatory hurdles.” The Financial Times was the first to break the story.

Nvidia will pay SoftBank $1.25 billion for failing to complete the purchase, while Arm CEO Simon Segars will step down and be replaced by Rene Haas, the head of IP at Arm, who also used to lead Nvidia’s Arm division many years ago.

“[Segars] has determined that the time and work necessary to take the business public and everything around it was not something he wanted to sign up for at this juncture of his career,” Haas tells TechCrunch. “As a result, he’ll be stepping down.” I’m going to take his place.”

The deal, which was announced in September 2020, would have given GPU manufacturer Nvidia control of the company whose architecture and intellectual property are key to almost every smartphone and tablet chip ever made, as well as a growing number of server chips and Apple’s entire future product roadmap for its impressive Arm-powered laptop and desktop PCs. (In late 2020, Apple’s Arm laptop CPUs dazzled the industry, putting rival manufacturers on notice.)

SoftBank has announced that Arm will go public in the fiscal year that begins April 1st. Nvidia would to respond to The Verge, even when asked if the deal had fallen through. Requests for response from SoftBank and Arm were not immediately returned.

The transaction has been criticized almost since the moment it was revealed, with Nvidia CEO Jensen Huang having to defend it in public several times until finally acknowledging it will take considerably longer than expected.

After objections from UK, EU, and US officials concerned about what Nvidia may do if it controlled Arm, Bloomberg reported just two weeks ago that the sale was falling through. The Federal Trade Commission (FTC) also filed a lawsuit to halt the transaction.

Cedric Blackwater
Cedric Blackwater
Cedric is a journalist with over a decade of experience reporting on local US news, and touching on many global topics. He is currently the lead writer for Bulletin News.

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