Nvidia reportedly backs down from the ARM acquisition
Nvidia has been trying to acquire UK-based chip designer ARM since 2020 the deal has raised concerns across the industry and it's yet to get the regulators' approval. Reportedly, this might never happen as Nvidia is stepping down from the negotiations.
Bloomberg reports that Nvidia has informed its partners that it does not expect the deal to close, while Arm's current owner SoftBank is stepping up preparations for an initial public offering (IPO) of the company.
Shortly after Nvidia and ARM deal got public, big tech companies such as Qualcomm, Microsoft and even Google expressed concern that it would lead to an unfair competitive advantage for Nvidia. After all, ARM's chip designs are used by a multitude of competing companies. Although Nvidia promises that it would keep the business model after the acquisition, regulators from the US, EU, UK and even China have opened antitrust investigations and are trying to stop the deal.
Officially, Nvidia representatives remain hopeful that the deal will finally come through. Softbank and Arm didn't comment on the new report.