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Nvidia cancels $40 billion arms deal in blow to Big Tech: report


Graphics chip giant Nvidia has reportedly abandoned a $40 billion deal to acquire British chip designer Arm, amid anti-trust investigations in the United States and Europe.

According to a Financial Times report, citing sources, Nvidia will instead spend up to $1.25 billion on Arm owner SoftBank for not completing the deal.
Arm CEO Simon Segars would lose his job to Rene Hass, who ran Nvidia’s own Arm business many years ago.

The companies did not respond to the report released late Monday.

In December, the Federal Trade Commission (FTC) filed a lawsuit to block Nvidia’s $40 billion acquisition of Arm from Softbank on antitrust grounds.

The deal has come under scrutiny from regulators since it was announced last year.

“The proposed vertical deal would give one of the world’s largest chip companies control of computer technology and designs that rival companies rely on to develop their own competing chips,” the FTC said in a statement.

Arm is a leading provider of architecture technologies for most semiconductor companies. Its Arm instruction set is at the heart of nearly every mobile processor powering smartphones, including those made by Apple and Android devices that use Qualcomm chips.

But the company’s role in the chip industry was historic as a vendor-neutral one, raising fears that Nvidia could cut competitors off from essential Arm technology.

Some of Nvidia’s processors also use cores designed by Arm and its Arm architecture, although the company is best known for graphics processors, which use a different architecture.

FTC Chairwoman Lina Khan, who was named by President Joe Biden to lead the agency shortly after her confirmation earlier this year, has signaled her interest in tougher antitrust enforcement.

The European Commission opened an in-depth investigation in October to assess Nvidia’s acquisition of Arm for $40 billion.

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