Nvidia Quietly Looks To Dump Its Arm Ambitions

  • NVIDIA Corp NVDA is quietly preparing to abandon its purchase of Arm Ltd from SoftBank Group SFTBY SFTBF on bleak prospects of winning approval for the $40 billion chip deal, Bloomberg reports.
  • Nvidia expressed pessimism to its partners regarding the deal's success. 
  • SoftBank, meanwhile, is stepping up preparations for an Arm initial public offering as an alternative to the Nvidia takeover, the report adds. 
  • The purchase touted to become the biggest semiconductor deal in history faced global backlash from regulators and the chip industry, including Arm's customers. 
  • The U.S. Federal Trade Commission argued that Nvidia would become too powerful if it gained control over Arm's chip designs.
  • Qualcomm Inc QCOMIntel Corp INTC, and Alphabet Inc's GOOG GOOGL Google argued that Nvidia would fail to preserve Arm's independence because it's an Arm customer itself.
  • Price Action: NVDA shares traded lower by 4.90% at $222.38 on the last check Tuesday.
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