There’s more bad news for Nvidia to acquire ARM. Another agency has concerns that Nvidia has complete control over the UK chip company, which provides blueprints to countless tech companies like Apple and Samsung. Just days after the UK launched a six-month investigation into the deal, the US Federal Trade Commission decided to step in to look into the move.
During Nvidia’s third quarter earnings conference call, CFO Colette Kress revealed the FTC’s interest in the acquisition (via protocol). No further details of the FTC’s investigation have been released, but given the UK’s investigation and the expansion of its already ongoing investigation into the matter by the European Commission, this is not a good sign.
When Nvidia first announced the $ 40 billion acquisition of ARM in September 2020, the company predicted that everything would be completed within two years. As more and more victims jump on the investigation, this seems to be a higher and higher goal.
It makes sense that there are concerns about the Nvidia ARM takeover. So many companies rely on and use ARM designs that technical control by a manufacturer could result in an incredibly unfair shift in the market or potential security breaches. Nvidia has committed itself to the neutrality of ARM with the following declaration.
“As part of Nvidia, Arm will continue to operate its open licensing model while maintaining the global customer neutrality that was fundamental to its success with 180 billion chips shipped by its licensees to date. Arm Partners will also benefit from both. “Enterprise offerings, including Nvidia’s many innovations.”
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Even so, given the potential business and national security concerns, you can see why so many are looking at it.
ARM has quite a storied history as one of the UK-based premier tech companies, and the acquisition could be huge for Nvidia. In our explainer you can find out more about the deal and what it means for tech, gaming and the companies involved.
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