Aug 5, 2021
Considering crushing Nvidia's ARM dream
Bloomberg reports that people with knowledge of major politics in the UK reveal that the government may stop the acquisition for national security reasons and more.
Nvidia shares down 2.3 percentage points
Nvidia announced the trade of ARM from Softbank in September 2020 to a value of 40 billion dollars. Now, almost a year later, the trade is still not in the box.
The problem with Nvidia is a report presented in July which concludes that the acquisition threatens national security functions and that the agreement could be monopoly-driving. If the agreement goes through, ARM will be owned by an American company, instead of a Japanese one.
It is uncertain exactly why this is considered a security concern for Britain, as Bloomberg points out, but it may be simple enough because the United States is the largest target in the West in terms of cyberattacks.
This is how Nvidia summed up the agreement in September:
Use Nvidia's AI leadership with ARM's large ecosystem to create innovation for all consumers
Nvidia will expand ARM's research and development in Cambridge with a first-class AI team, and build an ARM / Nvidia AI supercomputer for groundbreaking research
Nvidia continues with ARM's open licensing model and consumer neutrality and expands ARM's license portfolio with Nvidia technology
It has not been concluded yet, and it may also go the way of Nvidia, but the market is somewhat skeptical right now.