NVIDIA to abandon its ARM Holdings acquisition plans

Published: 25th Jan 2022, 11:13 GMT   Comments

NVIDIA to drop its bid for ARM acquisition

Bloomberg is reporting that NVIDIA is to abandon plans to acquire ARM Holdings. This decision will cost 1.25B USD. 

NVIDIA faced strong opposition from regulatory bodies in their bid to purchase ARM Holdings, a British company owning the IP of its RISC (reduced instruction set computer) architectures. After numerous attempts to convince the market and governments that could oppose such a transaction, NVIDIA has allegedly given up the plans, which means that it will have to mark a $1.25 billion loss, money that should be considered a breakup fee.

NVIDIA’s original plan was to pay 40 billion USD for the company. However, the US chipmaker no longer expects this transaction to close.

Nvidia Corp. is quietly preparing to abandon its purchase of Arm Ltd. from SoftBank Group Corp. after making little to no progress in winning approval for the $40 billion chip deal, according to people familiar with the matter.

— Bloomberg

Back in 2020, NVIDIA promised to keep the open-source licensing model of ARM and retain customer neutrality under its wings. The company further reassured to expand research and development presence in Cambridge (UK) where ARM is located. Those promises, however, did not convince the regulatory bodies.

Without the full directing rights to the ARM architecture, NVIDIA’s bid to enter the CPU market may face new obstacles. Although both companies have had strong cooperation in the past, NVIDIA will not have the full right to designate the path for the ARM architecture.

ARM Holdings may now consider going public which would be an alternative to the NVIDIA takeover, Bloomberg reports.

Source: Bloomberg via Tom Warren, Wccftech




Comment Policy
  • Comments must be written in English.
  • Comments deemed to be spam or solely promotional in nature will be deleted. Including a link to relevant content is permitted, but comments should be relevant to the post topic. Discussions about politics are not allowed on this website.
  • Comments and usernames containing language or concepts that could be deemed offensive will be deleted. Note this may include abusive, threatening, pornographic, offensive, misleading, or libelous language.
  • Comments complaining about the article subject or its source will be removed.
  • A failure to comply with these rules will result in a warning and, in extreme cases, a ban. Please also note that comments that attack or harass an individual directly will result in a ban without warning.
  • VideoCardz Moderating Team reserves the right to edit or delete any comments submitted to the site without notice.
  • If you would like to appeal for a comment section ban to be removed, please use this page.
  • If you have any questions about the commenting policy, please let us know through the Contact Page.
Hide Comment Policy
Comments