Google and Microsoft now raise questions over Nvidia-Arm deal

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Both tech giants are reportedly developing their own Arm-based chips

In addition to Qualcomm, Google and Microsoft have now raised concerns to regulators regarding NVidia’s proposed $40bn acquisition of the British chip design firm arm.

According to reports from CNBC and Bloomberg, both tech giants have now reached out to regulators in the US, EU, UK and China about how the deal could change the way in which Arm licenses out its chip designs. NVidia’s planned $40billiob acquisition of the British chip design firm Arm has raised worries and concerns to regulators not only from   Qualcomm, but also Google and Microsoft. Both the giant tech companies have contacted the regulators in the US, EU, UK and China about the deal and the changes this deal will have when Arm licenses out its chip designs.

However, Nvidia CEO Jensen Huang explained to the Financial Times that the chipmaker will “maintain Arm’s open licensing model. We have no intention to ‘throttle’ or ‘deny’ Arm’s supply to any customer.”

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Arm’s chip designs are currently used in 95 percent of the world’s smartphones and tech giants worry that it will be much more difficult to use the company’s intellectual property if the acquisition receives the regulatory approval necessary for the deal to go through.

Driving AI forward

If Nvidia could increase its own chip business after acquiring the world most well-liked chip design firm, the GPU designer has maintained that its acquisition of Arm is based on driving AI forward.

While Qualcomm’s processors are based on chip designer architecture, it is reported that Google and Microsoft are developing their own Arm-based chips. Nvidia has been investing heavily in the space recently and the company is currently working on using machine learning-powered upscaling to increase the performance of its graphics cards so that they can be used in self-driving cars. UK’s Competition and Markets Authority, the EU and the US Federal Trade Commission (FTC) have initiated probes into the Nvidia-Arm deal. It a waiting game now until the investigations are completed to find out whether or not Nvidia will be permitted to buy out Arm.

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