The Federal Trade Commission has urged graphics chip maker Nvidia to block the $ 40 billion acquisition of chip designer Arm on Thursday, creating a powerful company that could hurt the growth of new technologies. I said I would.
Nvidia Corp, based in Santa Clara, California. In September 2020, it acquired UK-based Arm Ltd. from Japanese technology giant Softbank, saying, “We will establish the world’s best computing company for the AI era.”
However, the deal quickly raised concerns that Arm would abandon its business model of licensing chip designs to hundreds of tech companies, including many of Nvidia’s competitors. Arm’s chip design powers many smartphones around the world.
“FTC is trying to prevent the merger of the largest semiconductor chips in history to prevent chip conglomerates from disrupting the innovation pipeline of next-generation technologies,” FTC Competition Director Holly Bedova said in a news release. rice field. “This proposed deal distorts Arm’s incentives in the chip market and allows integrated companies to unduly undermine Nvidia’s rivals.”
The deal claims that the FTC will give the integrated company control over the technology that rivals need to develop their own chips. This can be an obstacle in areas such as data centers and car driving assistance systems.
UK and European Union regulators have also begun investigating transactions because of competition concerns.
“We will continue to work to demonstrate that this transaction will benefit the industry and promote competition,” Nvidia said. It said it “violently disagrees” with the FTC proceedings.
The company added, “We are committed to maintaining Arm’s open licensing model and making its IP available to all interested licensees now and in the future.”
An Arm spokesman introduced the question to Nvidia. A Softbank spokesperson did not immediately respond to the request for comment.
The FTC said the four members unanimously voted to file a complaint and the trial is scheduled to begin in August 2022.
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US Government Appeals to Block $ 40 Billion Nvidia-Arm Chip Trading | WGN Radio 720
Source link US Government Appeals to Block $ 40 Billion Nvidia-Arm Chip Trading | WGN Radio 720