Nvidia announced last September that it is poised to acquire Arm for USD 40 billion. This move was interrupted by the Federal Trade Commission (FTC) which sued the company.
Nvidia is reportedly telling its investors that it does not expect the transaction to close. Softbank is said to be preparing an initial public offering in case the Nvidia takeover does not happen. On the other hand, Bloomberg says that both companies are still negotiating with regulators at this time and hoping to come to an agreement if that is possible.
The FTC said that allowing this to happen will likely stifle “innovative next-generation technologies” and would “unfairly undermine” Nvidia’s competitors.
One of the biggest competitors that opposed this move is Qualcomm. The San Diego-based chip manufacturer told the FTC, EU commission, UK Competition and Markets Authority, and China’s State Administration for Market Regulation that if this acquisition happens Nvidia will become the “Gatekeeper” for Arm’s technology that may prevent other companies from having access to it.