NVIDIA Preparing to Abandon $40 Billion USD Purchase Of Arm: Bloomberg

NVIDIA might be relinquishing its efforts to acquire chip maker Arm after facing numerous hurdles presented by regulators.

Bloomberg reports that NVIDIA is quietly preparing to abandon its $40 billion USD acquisition of Arm from Softbank in the wake of pushback from Arm partners and regulatory scrutiny. As a result, Softbank will likely look at taking Arm public via an IPO, the report says.

Both NVIDIA and SoftBank remain publicly committed to the deal, and Bloomberg notes that no final decision has been made.

“We continue to hold the views expressed in detail in our latest regulatory filings — that this transaction provides an opportunity to accelerate Arm and boost competition and innovation,” said a NVIDIA spokesperson.

“We remain hopeful that the transaction will be approved,” SoftBank added.

However, such rumours are not surprising given it has long been clear that geopolitical headwinds have been blowing hard against the acquisition.

NVIDIA’s acquisition of ARM is under heavy scrutiny because the latter’s chip designs are used in almost everything from phones to cars. ARM currently operates under an open-licensing model and provides its chip designs to any company in any industry, across the world.

While NVIDIA claims that it will maintain the same model following the acquisition, tech giants who rely on ARM technology fear that things might change under NVIDIA.