San Francisco, Feb 13 | Several companies including Qualcomm, Microsoft and Google are reportedly nervous about Nvidia acquiring British chip designer Arm.
According to reports by CNBC and Bloomberg, the tech giants have made their concerns that the deal could harm competition known to regulators around the world.
They fear that the acquisition will lead to changes in how Arm licenses out its chipmaking technology, despite Nvidia pledging that it will not force Arm to change the way it interacts with other businesses, The Verge reported on Friday.
Nvidia is a leader in GPU, which creates interactive graphics on laptops, workstations, mobile devices, notebooks, and PCs, among others.
The company announced in September 2020 its intention to buy Arm Ltd from SoftBank in a $40 billion deal. Its rivals now fear that any restrictions on Arm’s licences could hurt them.
Qualcomm’s processors rely on Arm’s technology, while Microsoft and Google are reportedly working on their own Arm-based chips.
Nvidia’s rivals do not appear to be convinced by the argument that the company will not interfere in Arm’s licences of chipmaking technology.
On its part, Nvidia had said that the acquisition of Arm is intended to push its Artificial Intelligence (AI) efforts.
The combination brings together Nvidia’s leading AI computing platform with Arm’s vast ecosystem to create the premier computing company for the age of artificial intelligence, accelerating innovation while expanding into large, high-growth markets, the company said while making the announcement of the Arm deal.
The companies raising objections to the deal have approached regulators in the US, EU, UK, and China, said the report.
The deal is reportedly already under review by the Federal Trade Commission in the US.