US tech giants, Nvidia has announced that it will not continue with the $40 billion deal to take
ownership of Arm.
Back in September 2020, Nvidia announced a $40 billion deal to buy popular chip designer, Arm from
Japanese owner, Softbank. Now, Nvidia has publicly announced that the deal is off, saying that it is due
to “significant regulatory challenges.”
Nvidia announced the annulment of the deal in a news release on its website, saying there were major
regulatory hurdles despite all efforts by the two firms. This statement comes after several regulatory
bodies, including those in Europe and the US, who either expressed concerns or took action against it.
Arm is perhaps the most important chip designer in the mobile technology sector as of now, with its
architecture used by the vast majority of smartphones as well as gaming consoles and an increasing
number of laptops. The company also designs CPU cores and GPUs that are used in chipsets from
Qualcomm, Mediatek, Samsung, and others.
Arm publicly stated that its next step would be going public. Its parent company, Softbank will
receive a $1.25 billion breakup fee from Nvidia as a result of the deal not going ahead.