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| Nvidia cancels the acquisition of a huge arm |
The sale of Britain's ARM chip to Nvidia failed after regulators in the US, UK and EU raised serious concerns about its impact on competition in the global semiconductor industry.
The deal should give Nvidia control of the company, whose architecture and intellectual property are essential to all smartphone and tablet chips, as well as a growing number of server chips, as well as future computers, laptops and desktops from Apple. .
Several major tech companies that rely on Arm's chip designs, including Qualcomm and Microsoft, have opposed the acquisition.
And SoftBank, Arm's parent company, announced that graphics giant Nvidia will no longer spend $40 billion to acquire Arm. Nvidia paid SoftBank $1.25 billion to not carry out the deal.
SoftBank is now announcing that Arm will continue its initial public offering (IPO) for the fiscal year beginning April 1st. The failure of the deal would cause turmoil in Arm's management as CEO Simon Segars was replaced by the company's head of intellectual property, Rene Haas.
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The deal came under intense scrutiny after it was announced, with Nvidia CEO Jen-Hsun Huang often forced to defend it publicly, eventually admitting that it could take longer than expected.
About two weeks ago, Bloomberg reported that the deal had stalled. This comes on the heels of challenges from regulators in the UK, EU and US. The Federal Trade Commission also filed a lawsuit to block the takeover.
The failed deal deprives SoftBank of the windfall it received from Nvidia's stock price rally. The deal was valued at nearly $40 billion when it was announced in September 2020. But as the graphics giant's share price has gone up, so has it.
Nvidia is the most valuable chip company in the US thanks to the performance of its GPU chips.
Although a GPU is still considered essential for gaming. But it is widely used in artificial intelligence and other advanced fields.