Back in September 2020,Nvidiaannounced a mega merger between itself and the enormously influential UK chip company Arm, and that the deal would be worth a staggering $40 billion. However, since then, there has been a lot of corporate and governmental backlash aimed squarely at “team green.” At one point, theFederal Trades Commission moved to block Nvidia’s acquisition, and while Jensen Huang and co fought back, it looks as though the GPU giant has finally had to give up the ghost.
According to a report from Games Industry, which itself references a statement to investors,Nvidiahas finally pulled the plug on its merger with Arm, citing “significant regulatory challenges” that have been pushing back against the deal pretty much from day one. On top of this, the company has also had to forfeit the $1.25 billion deposit which, in accordance with the agreement, is “non-refundable.” The deal was expected to be finalized in March of this year.
RELATED:Looks Like Nvidia Is Abandoning Its $40 Billion Acquisition of Arm
It’s perhaps not too surprising that the deal has had to be terminated. Back in February 2021, the likes ofGoogle and Microsoft disputed the Nvidia/Arm deal. Given that the chip manufacturer licenses its technology to massive companies, such as Apple, Amazon, Intel, Samsung, as well as the other aforementioned two, there were grave concerns that having corporate power over it would tip the market in Nvidia’s favor, which regulatory bodies claimed would give the company an unfair advantage over the competition.
TheEuropean Union even got involved in the $40 billion acquisition, and while Nvidia did argue its case of how it would ultimately be beneficial to the industry for everyone, it clearly was not enough to convince those in power. What team green will do next remains to be seen, but the fact that it has decided to terminate the deal after all shows just how many companies and governing bodies were against it in the first place.
As forNvidiaitself, the conglomerate is currentlygetting ready to launch its expensive RTX 3090 Ti, a beefier version of its 3090. However, things are not looking great on that front, either. With no word about when it will be launched, and reviewers yet to receive theirs at the time of writing, there are concerns that the company is dragging its heels about releasing it. In which case, there needs to be some rush on getting information out in an official capacity, especially given that the GPU market is almost ready to leap into the next generation.
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