Nvidia abandons a huge deal to acquire Arm, must pay $ 1.25 billion

According to three sources inside the Financial Times, Nvidia will not spend $ 40 billion to continue the acquisition of Arm. This is considered the largest acquisition of the semiconductor industry to date, if it succeeds.

However, there are concerns that regulators in the US and Europe will investigate the exclusivity of the acquisition, given that so many other Nvidia competitors are relying on Arm’s chip technology. So Nvidia had to rethink its plan.

The deal, first announced in September 2020, promises to give GPU maker Nvidia full control over the architecture and patents that are key to every processor chip on smartphones, tablets, and even smartphones. computer, server.

The Financial Times source also said that Nvidia will have to pay $ 1.25 billion to Arm owner SoftBank, for canceling this acquisition. But even if it doesn’t sell Arm to Nvidia, SoftBank plans to IPO and sell Arm stock.

Currently, Nvidia still refuses to comment, not even confirm or deny that the deal to acquire Arm has failed. Softbank also did not disclose any news. However, the deal’s cancellation seems to have been decided.

This will also be good news for Apple, Qualcomm or even Intel. Because their competitors no longer have the opportunity to own the technology that they all have to depend on to be able to produce their own processor chips.

Reference: theverge