US Steps in to Challenge Nvidia Takeover of Chip Designer Arm

The planned acquisition of chip creator Arm by Nvidia has been contested by the US Federal Trade Commission.

The planned acquisition, according to the FTC, would give Nvidia too much influence over computer technologies used by competitors.

Apple, Qualcomm, Sony, and Samsung are among the businesses that have licensed Arm’s designs and technologies.

“We will seek to demonstrate that this purchase will benefit the industry,” Nvidia stated.

The firm creates high-performance gaming graphics cards, mobile computer devices, and software and artificial intelligence systems.

Arm was once a British company that was sold to SoftBank in Japan in 2016.

Nvidia revealed its intended acquisition in September 2020, but the transaction has been met with regulatory scrutiny and legal concerns, including probes in the United Kingdom and Europe.

“The proposed merger would give Nvidia the capacity and motivation to utilize its dominance of this technology to harm its competitors, limiting competition and eventually resulting in lower product quality, lower innovation, higher pricing, and fewer choices,” the US watchdog warned.

Nvidia agreed to uphold Arm’s open-licensing strategy, keep the brand, keep the firm in the United Kingdom, and recruit additional people.

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