Nvidia is set to cancel its takeover of chipmaker Arm after failing to obtain regulatory authorization. According to reports, the company has notified partners that it does not anticipate the $40 billion deal to close.
No final decision has been made, and the companies are still negotiating with authorities.
SoftBank, a Japanese technology conglomerate, agreed to sell Arm to Nvidia in September 2020 as part of the semiconductor industry’s biggest deal ever. However, the US Federal Trade Commission filed a lawsuit to prevent Nvidia’s buyout, claiming it would undermine competition, while the UK government launched an inquiry into the agreement.
“We remain hopeful that the transaction will be approved,” a SoftBank spokesperson said in a statement on Tuesday.
The arm isn’t as well-known as Qualcomm and Intel. Still, its work is ingrained in many of the world’s mobile phones because it licenses chip designs and associated technologies to manufacturers like Apple, Samsung, and Qualcomm.
According to an Nvidia representative, the firm continues to believe, as stated in its most recent regulatory filings, that the purchase “provides an opportunity to accelerate Arm and boost competition and innovation.”