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NVIDIA’s deal to acquire Arm in fresh trouble amidst concerns over competition in the industry

In the recent development regarding Nvidia’s $54 billion acquisition of chip manufacturer Arm, the company tried to expedite the deal by offering concessions to EU regulators. Unfortunately, it seems that things did not exactly work in the favor of the GPU manufacturer as its desire to buy the British company hit a stumbling block today. This development came as the authorities are now concerned about how the deal will affect competition in the industry.

According to sources, the deal of NVIDIA-Arm is expected to face an extended EU antitrust investigation due to Nvidia’s concessions failing to address competition concerns. In the preliminary review which was conducted by the European Commission which is expected to conclude on October 27, the review is soon expected to be followed by a further four-month investigation into the deal.

“The regulatory process is confidential. The transaction will help to transform Arm and boost competition and innovation, including in the UK.”

to make things fair, the competition enforcer for the EU opted not to receive feedback from rivals and customers stating that the concessions were not sufficient enough to alleviate its concerns. The graphics maker had earlier announced that it would operate Arm as a neutral technology supplier amid concerns from Arms biggest customers, including Qualcomm, Samsung Electronics, and Apple.

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Currently, NVIDIA ranks as the world’s biggest manufacturer of graphics chips and is also currently establishing itself as a market leader in the artificial intelligence chips field. If the deal to acquire Arm is completed then it will make NVIDIA a tech behemoth in the industry. With these concerns in mind, it offered “behavioral remedies” to the commission, which usually indicates a commitment to take measures at preserving competition.

“The combination of Arm and Nvidia is a better outcome than an IPO,” believes Simon Segars, Arm’s chief executive. “The level of investment that will be needed to lead in artificial intelligence will be unprecedented.”

source

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Nivedita Bangari
Nivedita Bangari
I am a software engineer by profession and technology is my love, learning and playing with new technologies is my passion.
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