The U.S. Federal Trade Commission (FTC) sued to block the $40 billion proposed acquisition of Arm Ltd. by Nvidia Corp.
The FTC vote was 4-0.
The FTC complaint states that the acquisition will harm competition in three worldwide markets in which Nvidia competes using Arm-based products:
- High-Level Advanced Driver Assistance Systems for passenger cars. These systems offer computer-assisted driving functions, such as automated lane changing, lane keeping, highway entrance and exit, and collision prevention;
- DPU SmartNICs, which are advanced networking products used to increase the security and efficiency of datacenter servers; and
- Arm-Based CPUs for Cloud Computing Service Providers.
The complaint also alleges that the acquisition will harm competition by giving Nvidia access to the competitively sensitive information of Arm’s licensees, some of whom are Nvidia’s rivals, and that it is likely to decrease the incentive for Arm to pursue innovations that are perceived to conflict with Nvidia’s business interests.
“The FTC is suing to block the largest semiconductor chip merger in history to prevent a chip conglomerate from stifling the innovation pipeline for next-generation technologies,” said FTC Bureau of Competition Director Holly Vedova. “Tomorrow’s technologies depend on preserving today’s competitive, cutting-edge chip markets. This proposed deal would distort Arm’s incentives in chip markets and allow the combined firm to unfairly undermine Nvidia’s rivals. The FTC’s lawsuit should send a strong signal that we will act aggressively to protect our critical infrastructure markets from illegal vertical mergers that have far-reaching and damaging effects on future innovations.”
NVIDIA to acquire ARM for $40 billion
In a deal that will redefine the semiconductor market, NVIDIA agreed to acquire Arm Limited from Softbank for $40 billion. Under the deal, NVIDIA will pay to SoftBank a total of $21.5 billion in NVIDIA common stock and $12 billion in cash. NVIDIA will also issue $1.5 billion in equity to Arm employees. The deal does not include Arm’s IoT Services Group.
NVIDIA vowed to retain Arm’s open-licensing model while maintaining the global customer neutrality that has been foundational to its success. NVIDIA also committed to retaining Arm’s headquarters in Cambridge, UK.
SoftBank will retain a minority stake in NVIDIA, which is expected to be under 10%.
“AI is the most powerful technology force of our time and has launched a new wave of computing,” said Jensen Huang, founder and CEO of NVIDIA. “In the years ahead, trillions of computers running AI will create a new internet-of-things that is thousands of times larger than today’s internet-of-people. Our combination will create a company fabulously positioned for the age of AI.
“Simon Segars and his team at Arm have built an extraordinary company that is contributing to nearly every technology market in the world. Uniting NVIDIA’s AI computing capabilities with the vast ecosystem of Arm’s CPU, we can advance computing from the cloud, smartphones, PCs, self-driving cars and robotics, to edge IoT, and expand AI computing to every corner of the globe.
“This combination has tremendous benefits for both companies, our customers, and the industry. For Arm’s ecosystem, the combination will turbocharge Arm’s R&D capacity and expand its IP portfolio with NVIDIA’s world-leading GPU and AI technology.
https://nvidianews.nvidia.com/news/nvidia-to-acquire-arm-for-40-billion-creating-worlds-premier-computing-company-for-the-age-of-ai
NVIDIA acquires Mellanox – focus on Next Gen Data Centers
NVIDIA completed its $7 billion acquisition of Mellanox Technologies. The deal was originally announced on March 11, 2019.
NVIDIA says that by combining its computing expertise with Mellanox’s high-performance networking technology, data center customers will achieve higher performance, greater utilization of computing resources and lower operating costs.
“The emergence of AI and data science, as well as billions of simultaneous computer users, is fueling skyrocketing demand on the world’s datacenters,” said Jensen Huang, founder and CEO of NVIDIA. “Addressing this demand will require holistic architectures that connect vast numbers of fast computing nodes over intelligent networking fabrics to form a giant datacenter-scale compute engine.
