Google, Qualcomm and others are concerned about ARM's sale to Nvidia
Tech giants including Google, Microsoft and Qualcomm have expressed concerns about the sale of ARM to Nvidia. They worry that the $40 billion acquisition of the chipmaker could upset the semiconductor market by giving too much power to one company with vested interests in the sector.
Nvidia CEO Jensen Huang said the vertical acquisition would not affect the component maker's business model, which would continue to serve everyone. The company's interest in owning ARM would be in integrating the technology with the development of its AI for self-driving cars.
The companies have contacted antitrust authorities in the United States, the United Kingdom, Europe and China, demanding that the sale be blocked. For the sale to go ahead, regulators need to hear from the affected companies, a process that could take time and result in concessions, contract changes – or even a block on the purchase.
Too much power in Nvidia's hands?
Softbank Group made the deal to sell ARM because its financial situation is not in the best shape. Recently, the conglomerate was seen selling off some of its assets to pay off debts. The chipmaker serves companies all over the world, supplying essential components to giants such as Huawei, Apple, Samsung and Apple.
The sale of ARM to Nvidia worries Google and Qualcomm because the monopoly could easily unbalance any investment in technology. ARM's influence in the market is enormous, since Qualcomm's processors are based on ARM components, as are Qualcomm's chips. Apple. Google and to Microsoft are working on their own processors, also using the same technologies.
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