Nvidia CEO confirms the acquisition of ARM will complete in 2022
Nvidia announced last year that it was interested in acquiring Arm for $40 billion in September 2020. However, it appears that the UK government, where Arm is based, is not pleased with the proceedings. Today, the Secretary of State for Digital, Culture, Media, and Sport (UK) issued a public interest intervention notice (PIIN) confirming that the matter will be investigated under the Enterprise Act 2002. The governing body has asked the Competition and Markets Authority (CMA) to investigate the proceedings and prepare a report by July 30, 2021, in order to understand the long-term national consequences of such an acquisition.
On 19 April 2021, the Secretary of State issued a public interest intervention notice (PIIN), confirming that he is intervening in the sale on national security grounds. In reaching this decision, he considered advice received from officials across the investment security community. The Competition and Markets Authority (CMA) will prepare a report on the competition and national security aspects of the proposed transaction. The CMA has until midnight on 30 July 2021 to complete and submit this report to the Secretary of State.
Nvidia CEO Jensen Huang expressed his confidence in the acquisition a few days ago in a press interview (via VentureBeat), stating that he expected the deal to be completed by 2022. Here’s an excerpt from his statement:
I’m very confident that the regulators will see the wisdom of the transaction. It will provide a surge of innovation. It will create new options for the marketplace. It will allow ARM to be expanded into markets that otherwise are difficult for them to reach themselves. Like many of the partnerships I announced, those are all things bringing AI to the ARM ecosystem, bringing Nvidia’s accelerated computing platform to the ARM ecosystem — it’s something only we and a bunch of computing companies working together can do. The regulators will see the wisdom of it, and our discussions with them are as expected and constructive. I’m confident that we’ll still get the deal done in 2022, which is when we expected it in the first place, about 18 months.
He further underlined the importance of keeping ARM as an open platform and reiterated the commitment to licensing the software:
The ARM license, as you mentioned — acquiring ARM is a very similar approach to the way we think about all of computing. It’s an open platform. We sell our chips. We license our software. We put everything out there for the ecosystem to be able to build bespoke, their own versions of it, differentiated versions of it. We love the open platform approach.
Jensen Huang added that the ARM acquisition will allow both companies to “do things a lot better.” He stated that without NVIDIA technology, it would be difficult for ARM to expand into new computing platforms. NVIDIA CEO Jensen Huang cited recent partnerships with Amazon, Marvel, and Mediatek as examples of how the company collaborates with partners.