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Qualcomm opposes NVIDIA’s purchase of Arm
According to information from people familiar with the matter, American chipmaker Qualcomm has told regulators around the world that it opposes NVIDIA’s acquisition of British chip developer Arm. Recall that the amount of the deal, which has been discussed for some time, is $ 40 billion.
Qualcomm has disclosed its concerns over NVIDIA’s acquisition of Arm to the FTC, the European Commission, the UK Competition and Market Administration and the Chinese State Administration on Market Regulation. As a reminder, Arm is currently owned by Japanese tech giant SoftBank.
The FTC investigation into the deal has reportedly entered a second phase and the regulator has asked SoftBank, NVIDIA and Arm for further details. According to sources familiar with the matter, this request for information can take many months to complete, as it requires the preparation of a huge amount of documents. In addition, it became known that at the second stage of the investigation, the US Federal Trade Commission will also listen to testimonies from other companies that may have information that could influence the decision.
Regulators, which Qualcomm approached with their concerns about the deal between Arm and NVIDIA, did not comment on the appeal of the American chip maker to them. But NVIDIA said it is confident that regulators will see only the benefits of its acquisition of Arm. Arm itself, like its owner SoftBank, did not comment on its attitude to Qualcomm’s attempts to interfere with the deal.
As a reminder, Arm spun off from Acorn Computers in 1978. The company is currently developing architectures for processors and graphics accelerators, which are used in 95% of all smartphones manufactured in the world. Arm grants proprietary chip development licenses to over 500 companies around the world. Qualcomm has opposed NVIDIA’s takeover of Arm because it believes it will restrict other manufacturers, including Qualcomm itself, from accessing Arm.
It’s worth noting that five reputable industry sources believe the deal will fail. Note also that not only Qualcomm is against the sale of Arm. Artificial intelligence startup Graphcore has raised concerns about the implications of the deal to the UK Competition and Market Administration, calling it anticompetitive and stating that it will restrict most companies’ access to advanced processor development.