After a series of hiccups and problems NVIDIA faced in the past few months over the acquisition of ARM, Bloomberg has reported that it might actually drop the plans to acquire the UK chip designing company, owned by SoftBank.
As we know, the ARM architecture is very popular among a lot of chipmakers and most of our smartphone’s SoCs uses ARM’s designs. So, if NVIDIA would have anyways acquired ARM, that would obviously raise questions of customer neutrality and that’s obvious.
This is one of the major concerns acquiring ARM Holdings, the British company that owns the IP of its RISC (reduced instruction set computer) architectures. NVIDIA tried a lot to convince the market, various committees/regulatory bodies and governments, however, the deal never looked like passing through.
As Bloomberg’s report mentions, 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.
This mega $40 billion deal of NVIDIA has fallen apart and it will quietly exit from the deal with a $1.25 billion loss, this money that should be considered a breakup fee. So, NVIDIA’s future plans to enter the CPU market with the ease of acquiring ARM exclusively is no longer an option that doesn’t mean the two companies cannot work together nevertheless.
As SoftBank is no longer interested in ARM, the better option for ARM Holdings might be going public, a viable alternative to being acquired by NVIDIA.
via Videocardz
Read More:
