A group of tech giants including Qualcomm, Microsoft and Google have reportedly informed regulators around the world that they are against Nvidia’s acquisition of British chip designer Arm, reports said on Thursday.
The companies raising objections to the deal, which is reportedly already under review by the Federal Trade Commission, have approached regulators in the US, EU, UK, and China, a CNBC report said.
These companies fear that the acquisition will lead to changes in how Arm licenses out its chipmaking technology, despite Nvidia pledging that it will not force Arm to change the way it interacts with other businesses, The Verge reported on Friday.
Nvidia is a leader in GPU, which creates interactive graphics on laptops, workstations, mobile devices, notebooks, and PCs, among others.
The company announced in September 2020 its intention to buy Arm Ltd from SoftBank in a $40 billion deal. Its rivals now fear that any restrictions on Arm’s licences could hurt them.
Qualcomm’s processors rely on Arm’s technology, while Microsoft and Google are reportedly working on their own Arm-based chips.
Nvidia’s rivals do not appear to be convinced by the argument that the company will not interfere in Arm’s licences of chipmaking technology.
On its part, Nvidia had said that the acquisition of Arm is intended to push its Artificial Intelligence (AI) efforts.
When announcing the acquisition, both the parties involved had said that their combination brings together Nvidia’s leading AI computing platform with Arm’s vast ecosystem to create the premier computing company for the age of artificial intelligence, accelerating innovation while expanding into large, high-growth markets.
“This combination has tremendous benefits for both companies, our customers, and the industry,” a CNBC report quoted Nvidia CEO Jensen Huang as saying when the deal was announced.