Back in September 2020, Nvidia announced a mega merger between itself and the enormously influential UK chip company Arm, and that the deal would be worth a staggering $40 billion. However, since then, there has been a lot of corporate and governmental backlash aimed squarely at “team green.” At one point, the Federal Trades Commission moved to block Nvidia’s acquisition, and while Jensen Huang and co fought back, it looks as though the GPU giant has finally had to give up the ghost.
According to a report from Games Industry, which itself references a statement to investors, Nvidia has finally pulled the plug on its merger with Arm, citing “significant regulatory challenges” that have been pushing back against the deal pretty much from day one. On top of this, the company has also had to forfeit the $1.25 billion deposit which, in accordance with the agreement, is “non-refundable.” The deal was expected to be finalized in March of this year.
The European Union even got involved in the $40 billion acquisition, and while Nvidia did argue its case of how it would ultimately be beneficial to the industry for everyone, it clearly was not enough to convince those in power. What team green will do next remains to be seen, but the fact that it has decided to terminate the deal after all shows just how many companies and governing bodies were against it in the first place.
As for Nvidia itself, the conglomerate is currently getting ready to launch its expensive RTX 3090 Ti, a beefier version of its 3090. However, things are not looking great on that front, either. With no word about when it will be launched, and reviewers yet to receive theirs at the time of writing, there are concerns that the company is dragging its heels about releasing it. In which case, there needs to be some rush on getting information out in an official capacity, especially given that the GPU market is almost ready to leap into the next generation.
Source: Games Industry, SoftBank Group Corp (statement to investors)
