Nvidia's $40 billion acquisition of Arm was blocked by The Federal Trade Commission

Gaming News - Nvidia's $40 billion acquisition of Arm was blocked by The Federal Trade Commission (FTC).

Nvidia went ahead and started a takeover of UK chip design company Arm a year ago, but it received criticism from main stakeholders.

Nvidia is one of the world's largest technology corporations, a leading innovator in computers, and the maker of some of the most frequently used graphics cards. Nvidia has also shown an interest in other fields, and last year it paid $40 billion to buy UK chipmaker Arm in order to research artificial intelligence. However, not only competing firms who utilize Arm, like Samsung and Apple but also the EU and the UK government, we're interested in the agreement. The Federal Trade Commission has now taken action to completely halt the takeover.

As per a news announcement on the Federal Trade Commission's website, the antitrust and consumer protection agency has filed a lawsuit against Nvidia in an attempt to prevent the acquisition of Arm. The rationale for the block is that it prevents one business from effectively controlling one of the largest chip manufacturers, which many significant companies use in their products. The FTC believes that controlling a vital company on which many significant customers rely would give Nvidia the power to "undermine its competitors" and jeopardize the quality of products produced by businesses who rely on Arm.

Image Flickr

The merger has enraged many people, not just the FTC. Microsoft and Google opposed Nvidia's acquisition of Arm at the start of the year, and the Federal Trade Commission was asked to intervene. The transaction would "distort" Arm's incentive if the GPU tech giant had complete control over it, according to FTC Bureau of Competition Director Holly Vedova, and would "unfairly" damage competitor companies. On August 9, 2022, the administrative trial will commence.

Despite being investigated by the Federal Trade Commission, Nvidia continues to develop its numerous products. The RTX 3090 Ti was recently speculated to be in the works, which would be a small upgrade over the RTX 3090, which was released last September. Furthermore, Nvidia appears to be looking ahead to the next generation of GPUs, with reports suggesting that the flagship 4000 series could be available ahead of schedule in mid-2022.

Even so, the business continues to be affected by tech shortages caused by semiconductor supply concerns. Nvidia, AMD, and newcomers Intel are still battling to get their latest products into the hands of consumers, according to Intel's CEO, who believes the deficit will last until 2023.

H/S: FTC 

             Latest Gaming News