Nvidia's ambitious acquisition of ARM to join the ranks of NVIDIA has fallen through, although this wasn't entirely unexpected . The deal between Nvidia and the semiconductor giant ARM has officially ended.
Both companies have confirmed the cancellation of the deal, citing " significant regulatory issues " as the reason it could not proceed. The deal was rejected by investors and local regulators from the moment it was announced.
A year and a half later, ARM does not join NVIDIA
The attempted acquisition began in 2020 and was valued at $40.000 billion , not including the purchase of shares that would have raised the figure to $66.000 billion. With the acquisition now canceled, Nvidia has lost the $1.250 billion deposit it agreed to with SoftBank, ARM's parent company.
The attempted takeover drew considerable criticism from industry rivals and government agencies. The Federal Trade Commission filed a lawsuit to block the deal, which it deemed an illegal vertical merger. The British government also opposed the acquisition, primarily due to concerns about the job security of ARM's 3.000 UK employees, who may have faced restructuring.
NVIDIA hoped to expand on ARM's Cambridge operations with a new AI research and education center. There were also plans to build an Artificial Intelligence supercomputer powered by technology from both manufacturers.
Despite these promises, regulators continued to fear that it could affect workers. There were also fears that with ARM owning the patents on hundreds of processors for consumer devices for small manufacturers, that NVIDIA would make it difficult to acquire and manufacture affordable CPUs, leading internal investors to oppose this acquisition.
Source: Digital Trends
