Recently, Arm unveiled new chip blueprints and software tools aimed at enhancing smartphones’ ability to handle AI tasks more efficiently. But they didn’t stop there – Arm also implemented changes to how they deliver these blueprints, potentially accelerating adoption.

Arm is evolving its solution offerings to maximise the benefits of leading process nodes. They announced the Arm Compute Subsystems (CSS) for Client, their latest cutting-edge compute solution tailored for AI applications in smartphones and PCs.

This CSS for Client promises a significant performance leap – we’re talking over 30% increased compute and graphics performance, along with an impressive 59% faster AI inference for AI, machine learning, and computer vision workloads.

While Arm’s technology powered the smartphone revolution, it’s also gaining traction in PCs and data centres, where energy efficiency is prized. Though smartphones remain Arm’s biggest market, supplying IP to rivals like Apple, Qualcomm, and MediaTek, the company is expanding its offerings.

They’ve launched new CPU designs optimised for AI workloads and new GPUs, as well as software tools to ease the development of chatbots and other AI apps on Arm chips.

But the real gamechanger is how these products are delivered. Historically, Arm provided specs or abstract designs that chipmakers had to translate into physical blueprints – an immense challenge arranging billions of transistors.

For this latest offering, Arm collaborated with Samsung and TSMC to provide physical chip blueprints ready for manufacturing, which was a huge time saver.

Samsung’s Jongwook Kye praised the partnership, stating their 3nm process combined with Arm’s CPU solutions meets soaring demand for generative AI in mobiles through “early and tight collaboration” in the areas of DTCO and PPA maximisation for an on-time silicon delivery that hit performance and efficiency demands.

TSMC’s head of the ecosystem and alliance management division, Dan Kochpatcharin echoed this, calling the AI-optimised CSS “a prime example” of Arm-TSMC collaboration helping designers push semiconductor innovation’s boundaries for unmatched AI performance and efficiency.

“Together with Arm and our Open Innovation Platform® (OIP) ecosystem partners, we empower our customers to accelerate their AI innovation using the most advanced process technologies and design solutions,” Kochpatcharin emphasised.

Arm isn’t trying to compete with customers, but rather enable faster time-to-market by providing optimised designs for neural processors delivering cutting-edge AI performance.

As Arm’s Chris Bergey said, “We’re combining a platform where these accelerators can be very tightly coupled” to customer NPUs.

Essentially, Arm provides more refined, “baked” designs customers can integrate with their own accelerators to rapidly develop powerful AI-driven chips and devices.

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The Chinese venture of the British semiconductor icon began operating as an independent company and conducted its own in-house R&D to create new IP. Dylan Patel, Chief Analyst at SemiAnalysis, even penned a piece titled: ‘The Semiconductor Heist Of The Century – Arm China Has Gone Completely Rogue’.

Arm-owner SoftBank sold 51 percent of its stake in the Chinese venture, Arm Limited, to a consortium of Chinese investors for $775 million. With its remaining stake, SoftBank no longer had a majority to make any major decisions.

Arm China fired its CEO, Allen Wu, in June 2020 after he was accused of offering discounts to customers if they invested in his side hustle, Alphatecture. However, Wu refused to leave arguing that: “Arm China did not convene any valid board meeting”.

What followed was lawsuits to oust Wu from his post. In the meantime, Wu reportedly got rid of staff loyal to Arm from Arm China and even employed security guards in a bid to keep out unwanted guests to retain his position.

However, Nikkei and Reuters have reported that Wu has now been removed.

SoftBank will be pleased with the news as the certainty it provides will make it easier for the company to launch an IPO of Arm.

Arm is set to launch an IPO after the collapse of a $40 billion acquisition offer from Nvidia. The deal collapsed following scrutiny from numerous global regulators that were concerned Nvidia could limit rivals’ access to Arm’s chip designs or shift resources towards areas that benefit its new owner.

SoftBank considered and subsequently rejected the idea of pursuing an IPO (Initial Public Offering) of the company in 2019 and again in early 2020.

“We contemplated an IPO but determined that the pressure to deliver short-term revenue growth and profitability would suffocate our ability to invest, expand, move fast, and innovate,” explained Simon Segars, CEO of Arm, in January.

The company’s hand is now being somewhat forced through a lack of alternative options.

Arm has struggled from relatively flat revenues and rising costs despite the huge success of the company’s licensees such as Apple, Qualcomm, and Amazon. However, SoftBank has been keen to hype the company’s future prospects.

“Arm is becoming a centre of innovation not only in the mobile phone revolution, but also in cloud computing, automotive, the Internet of Things, and the metaverse, and has entered its second growth phase,” said Masayoshi Son, Representative Director, Corporate Officer, Chairman, and CEO of SoftBank Group.

In March, Arm announced that it was cutting up to 1,000 jobs from its global workforce. The move was seen as a bid to show potential investors that it’s running a leaner operation.

“To stay competitive, we need to remove duplication of work now that we are one Arm; stop work that is no longer critical to our future success; and think about how we get work done,” wrote Arm CEO Rene Haas in an email to staff.

Haas, the former head of Arm’s intellectual property unit, recently took over as the company’s chief executive as part of its internal strategy shakeup to help navigate it through these choppy waters.

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The post Arm takes back control of its Chinese biz ahead of IPO appeared first on AI News.

The British chip designer has struggled from relatively flat revenues and rising costs despite the huge success of the company’s licensees such as Apple, Qualcomm, and Amazon.

Nvidia proposed to acquire Arm for $40 billion and ensure the company is able to continue its pioneering work. However, the deal caught the eye of global regulators and rivals voiced their concerns that Nvidia could limit their access to Arm’s chip designs or shift resources towards areas that benefit its new owner.

Despite Nvidia offering legal assurances to counter the concerns, the deal looked set to be blocked by regulators. Last month, Nvidia decided to throw in the towel.

“Though we won’t be one company, we will partner closely with Arm,” said Nvidia CEO Jensen Huang at the time.

“The significant investments that Masa has made have positioned Arm to expand the reach of the Arm CPU beyond client computing to supercomputing, cloud, AI, and robotics.”

Arm was always now going to face some tough decisions. An IPO (Initial Public Offering) is the most likely outcome but is far from ideal.

SoftBank, Arm’s current owner, considered and subsequently rejected the idea of pursuing an IPO (Initial Public Offering) of the company in 2019 and again in early 2020.

“We contemplated an IPO but determined that the pressure to deliver short-term revenue growth and profitability would suffocate our ability to invest, expand, move fast, and innovate,” explained Simon Segars, CEO of Arm, in January.

However, faced with limited options, the IPO route now look set. Arm’s decision to cut its workforce looks to be part of a bid to boost potential investors’ confidence that a more lean operation with fewer overheads will improve rather than hinder the company’s prospects.

“To stay competitive, we need to remove duplication of work now that we are one Arm; stop work that is no longer critical to our future success; and think about how we get work done,” wrote Arm CEO Rene Haas in an email to staff.

Haas, the former head of Arm’s intellectual property unit, recently took over as the company’s chief executive as part of its internal strategy shakeup to help navigate it through these choppy waters.

Arm’s appeal is the company’s technical expertise in a world where such talent is a hot commodity. The company will need to convince investors the cuts won’t impact Arm’s groundbreaking work.

SoftBank is obviously keen to put a bullish outlook on Arm’s future.

“Arm is becoming a centre of innovation not only in the mobile phone revolution, but also in cloud computing, automotive, the Internet of Things, and the metaverse, and has entered its second growth phase,” said Masayoshi Son, Representative Director, Corporate Officer, Chairman, and CEO of SoftBank Group.

Whatever happens, we hope Arm finds a way to continue delivering the innovation that it has for the past three decades.

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The post Arm is cutting up to 1,000 jobs after Nvidia deal collapses appeared first on AI News.

The deal caught the attention of global regulators with anti-competition investigations launched in several jurisdictions including the UK, EU, and US.

In November 2021, UK Digital Secretary Nadine Dorries decided to block the merger pending the results of a 24-week ‘Phase 2’ investigation.

With the merger looking almost impossible to be approved by regulators, Nvidia has decided to throw in the towel.

Jensen Huang, Founder and CEO of Nvidia, said:

“Arm has a bright future, and we’ll continue to support them as a proud licensee for decades to come.

Arm is at the centre of the important dynamics in computing. Though we won’t be one company, we will partner closely with Arm.

The significant investments that Masa has made have positioned Arm to expand the reach of the Arm CPU beyond client computing to supercomputing, cloud, AI, and robotics.

I expect Arm to be the most important CPU architecture of the next decade.”

Arm has struggled from relatively flat revenues and rising costs despite the huge success of the company’s licensees such as Apple, Qualcomm, and Amazon.

SoftBank, Arm’s current owner, considered and subsequently rejected the idea of pursuing an IPO (Initial Public Offering) of the company in 2019 and again in early 2020.

“We contemplated an IPO but determined that the pressure to deliver short-term revenue growth and profitability would suffocate our ability to invest, expand, move fast, and innovate,” explained Simon Segars, CEO of Arm, last month.

Following the collapse of the Nvidia acquisition, Softbank will now have to reconsider an IPO for Arm.

Dr Lil Read, Analyst in the Thematic Research Team at GlobalData, commented:

“Softbank now needs to think of Arm’s future. An initial public offering (IPO) looks likely – the UK government would surely like to see the home-grown chip designer float in London, and potential IPO reforms could create the perfect environment for this. 

Otherwise, Arm may be ripe for a takeover by a private equity consortium backed by chip-friendly giants such as Apple, Qualcomm, and TSMC – Arm’s largest customers.”

Some of Nvidia’s rivals are said to have offered to invest in Arm if it helps the company to remain independent. A takeover from a private equity consortium looks to be Arm’s best option. If the company has to launch an IPO, it could struggle and will face some difficult choices.

Arm’s largest market, mobile, is saturated. The company will struggle to crack the datacentre and PC markets in the face of strong incumbents like Intel and AMD that have established ecosystem of developers, software, systems, and peripherals, and profits that enable them to make large R&D investments.

In an earlier response to the UK’s Competition and Markets Authority, aiming to quell the regulator’s fears about its acquisition of Arm, Nvidia wrote:

“Nvidia is particularly concerned that these pressures would drive Arm to deprioritize datacenter and PC and to instead focus on its core mobile and growing IoT businesses.

The result would be a concentrated CPU market largely controlled by Intel/AMD (x86).”

Capital markets would likely expect Arm to cut costs to maximise the company’s value. However, SoftBank sounds bullish on its prospects.

“Arm is becoming a centre of innovation not only in the mobile phone revolution, but also in cloud computing, automotive, the Internet of Things, and the metaverse, and has entered its second growth phase,” said Masayoshi Son, Representative Director, Corporate Officer, Chairman, and CEO of SoftBank Group.

Arm has announced a management shake-up in the wake of Nvidia’s exit from the deal.

Rene Haas, the former head of Arm’s intellectual property unit, will take over as the company’s chief executive and lead it during these challenging times. Haas previously worked at Nvidia for seven years.

With the Nvidia acquisition off the table, we can only hope that Haas finds a way to ensure Arm can continue to deliver the semiconductor innovation that it has for three decades.

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The post Nvidia exits from its proposed $40B acquisition of Arm appeared first on AI News.

Nvidia announced plans to acquire Cambridge-based Arm back in September 2020 in a deal worth $40 billion. As two of the biggest names in chip manufacturing, the deal naturally caught the attention of competition regulators around the world.

In November 2021, UK Digital Secretary Nadine Dorries decided to block the merger pending the results of a 24-week ‘Phase 2’ investigation.

Wouldn’t an IPO be an alternative to all of this?

Arm has been struggling from relatively flat revenues and rising costs despite the huge success of the company’s licensees such as Apple, Qualcomm, and Amazon. Arm’s current owner, SoftBank, considered and subsequently rejected the idea of pursuing an IPO (Initial Public Offering) of the company in 2019 and again in early 2020.

Simon Segars, CEO of Arm, explained: “We contemplated an IPO but determined that the pressure to deliver short-term revenue growth and profitability would suffocate our ability to invest, expand, move fast, and innovate.”

In addition, Arm’s largest market, mobile, is saturated and it could be difficult for Arm to crack the datacentre and PC markets in the face of strong incumbents like Intel and AMD that have established ecosystem of developers, software, systems, and peripherals, and profits that enable them to make large R&D investments.

“These observations are not criticisms of Arm’s technology or engineering team. Arm has great engineering talent in the areas where it focuses. But as a standalone IP licensing business, and without access to further capital, Arm has inherent scale, scope, and economic limitations that would impact Arm’s future as a standalone licensing firm,” reads the response.

Addressing competition concerns

Nvidia believes that its acquisition would provide Arm with the resources to move forward in the face of limited options. Capital markets. meanwhile, would expect Arm to cut costs to maximise the company’s value.

“Nvidia is particularly concerned that these pressures would drive Arm to deprioritize datacenter and PC and to instead focus on its core mobile and growing IoT businesses. The result would be a concentrated CPU market largely controlled by Intel/AMD (x86),” the response continues.

The company goes on to say that soaring profits for Arm’s customers are not a win for the company or for competition. Nvidia argues the “industry titans will be powerful and competitive, no matter what path Arm takes” and “the question at hand is whether regulators will approve the transaction and allow Arm to take the steps needed to enable others to compete.”

Nvidia highlights that it was SoftBank that approached the company about the potential of acquiring Arm rather than the other way around. Nvidia says it will continue to support x86 as it has a vested interest – building platforms such as Omniverse on such systems – but thinks that it can help Arm build a viable alternative ecosystem that will increase options and encourage the x86 giants to innovate.

Arm’s future as a British tech icon

From the UK’s perspective, another major concern was the impact on jobs and even the company’s future in the country. Hermann Hauser, the founder of Arm, once suggested the acquisition would be “surrendering the UK’s most powerful trade weapon to the US”.

In a binding offer, Nvidia committed to expanding Arm’s engineering teams in the UK—including a pledge to create a new group dedicated to creating purpose-built CPU IP for datacentres and PCs.

Nvidia chose to build its Cambridge-1 supercomputer in the UK, which was seen by many as a bid to show its commitment to the country. The firm also opened a new AI centre in Cambridge—home to an increasing number of exciting startups in the field such as FiveAI, Prowler.io, Fetch.ai, and Darktrace.

“We will create an open centre of excellence in the area once home to giants like Isaac Newton and Alan Turing, for whom key Nvidia technologies are named,” said Nvidia CEO Jensen Huang at the time.

“Here, leading scientists, engineers and researchers from the UK and around the world will come to develop their ideas, collaborate and conduct their ground-breaking work in areas like healthcare, life sciences, self-driving cars, and other fields.”

No incentive to foreclose

The final major concern around the acquisition is that the merged entities will refuse or restrict the licensing of future IP to give Nvidia a competitive advantage.

Nvidia points to the emergence of RISC-V and other alternatives to Arm that could become preferable “if the Merged Entity were to refuse to license future datacenter IP as soon as it can”. However, it says that would be many years down the road as “customers already have the IP in their possession, and it will be many years before their contracts are up for renewal”.

Furthermore, Nvidia says that it would have no economic incentive to foreclose:

“NVIDIA knows that such a strategy would be self-defeating, and has no incentive to pursue it. The Decision does not explain why any downstream customer would embrace a sole-source ecosystem. Even x86 has always had two bona fide suppliers (Intel and AMD), and now, x86 is licensable to anyone.”

It also says that Arm’s customers are Nvidia’s customers and any attempt to foreclose would damage its own business and reputation.

While regulators have been mulling whether or not to approve the deal, Nvidia says that Arm’s competition has been exploiting the delay to continue expanding their offerings.

Nvidia makes some fairly solid arguments in its response, but whether they’re enough to woo regulators is another question. It’s not just the UK’s regulator examining the deal, but also respective agencies from the US, China, and EU.

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The post Nvidia attempts to alleviate Arm merger concerns in CMA response appeared first on AI News.

Arm plays a critical role in the global technology supply chain with its designs used for edge AI chips and processors for smartphones, tablets, desktops, and servers.

It’s of little surprise that Nvidia wants to bring Arm under its wing and is willing to pay $40 billion (£29 billion) for it.

Global regulators, including in the UK and EU, have launched investigations into the deal due to the widespread implications.

Holly Vedova, Director of the Bureau of Competition at the FTC, said in a statement:

“The FTC is suing to block the largest semiconductor chip merger in history to prevent a chip conglomerate from stifling the innovation pipeline for next-generation technologies.

Tomorrow’s technologies depend on preserving today’s competitive, cutting-edge chip markets. This proposed deal would distort Arm’s incentives in chip markets and allow the combined firm to unfairly undermine Nvidia’s rivals.

The FTC’s lawsuit should send a strong signal that we will act aggressively to protect our critical infrastructure markets from illegal vertical mergers that have far-reaching and damaging effects on future innovations.”

The complaint highlights that Nvidia already uses Arm’s designs for areas including DPU SmartNICs, CPUs for cloud computing, and advanced driving systems. The FTC is concerned that Nvidia would have an incentive to use its acquisition of Arm to limit competitors’ access to new designs.

Some of Nvidia’s rivals have offered to invest in Arm if it helps the company to remain independent.

Dr Lil Read, Analyst at GlobalData, commented:

“The Nvidia-ARM deal is on its last legs. The regulatory environment is much tougher now since Qualcomm has formed a consortium to invest in ARM.

The FTC won’t let it be – nor will the UK CMA or the EU regulator. It’s likely that even if the deal managed to clear those hurdles, Chinese regulators would throw another spanner in the works.

Tying the acquisition up for another two years is not in anyone’s interest – not Nvidia’s, and certainly not ARM’s. There could be hope for ARM if a non-chip firm recognises this opportunity for vertical integration – a trend that we increasingly see with the likes of Tesla and Apple.”

Arm founder Hermann Hauser even suggested the merger would amount to “surrendering the UK’s most powerful trade weapon to the US”.

Last month, UK Digital Secretary Nadine Dorries ordered the CMA (Competition & Markets Authority) to launch a “Phase Two” probe into the proposed merger.

As part of its ‘Phase One’ report, the CMA determined the merger has the possibility of a “substantial lessening of competition across four key markets”. Those markets are data centres, the Internet of Things, automotive, and gaming.

The CMA now has 24 weeks to conduct Phase Two of its investigation.

Nvidia, for its part, has promised to work with UK regulators to alleviate concerns. The company has already pledged to keep Arm in the UK and hire more staff.

“Arm is an incredible company and it employs some of the greatest engineering minds in the world,” said Jensen Huang, CEO of Nvidia. “But we believe we can make Arm even more incredible and take it to even higher levels.”

Today’s decision by the FTC to launch a lawsuit makes the likelihood of the merger proceeding ever more remote.

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The post FTC steps in to block Nvidia’s $40B acquisition of Arm appeared first on AI News.

The CMA (Competition & Markets Authority) has been investigating whether the deal is anti-competitive. In August, it declared the deal does indeed raise “serious competition concerns”.

Arm founder Hermann Hauser went further and suggested the merger would amount to “surrendering the UK’s most powerful trade weapon to the US”.

Among the concerns are that Nvidia could limit competitors’ access to key technologies. The CMA claims to have received “a substantial number” of concerns from rivals and some have even offered to invest in Arm if it helps the company to remain independent.

Dorries has ‘quasi-judicial’ powers under the Enterprise Act 2002 to intervene in mergers on public interest grounds.

As part of its ‘Phase One’ report, the CMA determined the merger has the possibility of a “substantial lessening of competition across four key markets”. Those markets are data centres, Internet of Things, the automotive sector, and gaming.

Beyond the impact on competition, evidence provided from departments across government have also led the Secretary of State to deem that national security could be harmed from the merger and warrants further investigation.

“I have carefully considered the Competition and Market Authority’s ‘Phase One’ report into NVIDIA’s proposed takeover of Arm and have decided to ask them to undertake a further in-depth ‘Phase Two’ investigation,” commented Dorries.

“Arm has a unique place in the global technology supply chain and we must make sure the implications of this transaction are fully considered. The CMA will now report to me on competition and national security grounds and provide advice on the next steps.”

The CMA now has 24 weeks to conduct Phase Two of its investigation, although this could be extended by eight weeks if necessary. Upon receiving the report, the Digital Secretary could take action to remedy any adverse effects to the public interest or refer it back to the CMA.

David Bicknell, Principal Analyst, and Dr Lil Read, Analyst, on the Thematic Research Team at GlobalData, commented:

“This latest government probe is another nail in the coffin for the proposed merger between Nvidia and Arm. With proceedings likely to extend into late 2022 at the earliest, Nvidia should just abandon the deal and focus on its future away from Arm.

Ordering a security review signals that the UK government doesn’t want this bid to succeed. Couple this with an already underway EU investigation and the further prospect of a China referral, and Nvidia faces some tough questions. It is unlikely it will want the continued uncertainty of a bid that is going nowhere.

We think it is time for Nvidia to move on, and for Softbank to return Arm to where it found it—the stock market.

Nvidia’s future beyond Arm extends into the metaverse, a virtual world where users share experiences and interact in real-time within simulated scenarios. Nvidia is already targeting the metaverse as a key pillar of its future – a wise decision as GlobalData believes it will be the next big technology megatheme.”

Nvidia, for its part, has promised to work with UK regulators to alleviate concerns. The company has already pledged to keep Arm in the UK and hire more staff.

The company’s announcement of a new AI centre in Cambridge last year – which features an Arm/Nvidia-based supercomputer, set to be one of the most powerful in the world – was expected to be part of a bid to show UK regulators of the firm’s commitment to the country.

“Arm is an incredible company and it employs some of the greatest engineering minds in the world,” said Jensen Huang, CEO of Nvidia. “But we believe we can make Arm even more incredible and take it to even higher levels.”

“We want to propel it – and the UK – to global AI leadership.”

(Image Credit: UK Parliament under CC BY 3.0 license)

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The post UK Digital Secretary orders ‘Phase Two’ probe into Nvidia-Arm merger appeared first on AI News.

Nvidia has put in a $40 billion offer to acquire Cambridge-based Arm, which designs a large proportion of the chips that end up in devices.

“AI is the most powerful technology force of our time and has launched a new wave of computing,” said Jensen Huang, founder and CEO of NVIDIA, when the acquisition was announced.

“In the years ahead, trillions of computers running AI will create a new internet-of-things that is thousands of times larger than today’s internet-of-people. Our combination will create a company fabulously positioned for the age of AI.”

While the UK’s Competition and Markets Authority decided in August that the deal “raises serious competition concerns”, it’s taken until this week for the European Commission to launch its own investigation.

Both regulators are in agreement that Nvidia could make business very difficult for its competitors by charging higher royalties or withholding rights to some of Arm’s designs.

European Commission Executive Vice-President Margrethe Vestager, responsible for competition policy, said: 

“Semiconductors are everywhere in products and devices that we use every day as well as in infrastructure such as datacentres.

Whilst Arm and NVIDIA do not directly compete, Arm’s IP is an important input in products competing with those of NVIDIA, for example in datacentres, automotive, and in the Internet of Things.

Our analysis shows that the acquisition of Arm by NVIDIA could lead to restricted or degraded access to Arm’s IP, with distortive effects in many markets where semiconductors are used.

Our investigation aims to ensure that companies active in Europe continue having effective access to the technology that is necessary to produce state-of-the-art semiconductor products at competitive prices.”

The Commission says it will also investigate the potential impact of Arm’s R&D spending being refocused on products that are most profitable for Nvidia, at the detriment of competitors relying on Arm IP elsewhere.

Nvidia submitted commitments to the European Commission on 6 October 2021 to address some of the initial concerns, but the Commission deemed them insufficient.

“We are working closely with the European Commission through the regulatory process,” said an Nvidia spokesperson. “We look forward to the opportunity to address their initial concerns and continue demonstrating that the transaction will help to accelerate Arm and boost competition and innovation, including in the EU.”

In the UK, Nvidia has made several promises in a bid to woo regulators—including pledging to keep the business in the UK and hire more staff.

Nvidia also recently announced a new AI centre in Cambridge – home to an increasing number of leading startups in the field such as FiveAI, Prowler.io, Fetch.ai, and Darktrace – that features an Arm/Nvidia-based supercomputer, set to be one of the most powerful in the world. Nvidia says the centre demonstrates its commitment to the UK.

However, Arm founder Hermann Hauser recently warned that “surrendering the UK’s most powerful trade weapon to the US” would be “making Britain a US vassal state”.

The CMA, for its part, reports that it’s received a “substantial number” of concerns from Nvidia’s competitors. Some of Nvidia’s rivals have even offered to invest in Arm if it helps the company to remain independent.

The European Commission now has until 15 March 2022 to approve or reject the deal.

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The post EU launches antitrust probe into $40B Nvidia-Arm acquisition proposal appeared first on AI News.

A $40 billion merger of two of the biggest names in chip manufacturing was always bound to catch the eye of regulators, especially when it’s received such vocal opposition from around the world.

Hermann Hauser, Founder of Arm, even suggested that “surrendering the UK’s most powerful trade weapon to the US is making Britain a US vassal state”. As the UK continues to sign post-Brexit trade deals as part of its “Global Britain” endeavour and seeks to join such growing economic partnerships as the CPTPP, it’s a strong argument.

Given the size of the acquisition and its potential impact, UK Culture Secretary Oliver Dowden referred the deal to the Competition and Markets Authority (CMA) and asked the regulator to prepare a report on whether the deal is anti-competitive.

The executive summary of the CMA’s report was now been published.

Andrea Coscelli, chief executive of the CMA, said:

“We’re concerned that Nvidia controlling Arm could create real problems for Nvidia’s rivals by limiting their access to key technologies, and ultimately stifling innovation across a number of important and growing markets. This could end up with consumers missing out on new products, or prices going up.

The chip technology industry is worth billions and is vital to products that businesses and consumers rely on every day. This includes the critical data processing and datacentre technology that supports digital businesses across the economy, and the future development of artificial intelligence technologies that will be important to growth industries like robotics and self-driving cars.”

As the global tech industry continues to struggle from a chip shortage, further restricting access to new developments would provide a double-hit that’s bound to impact businesses and their consumers.

Rivals have understandably also raised concerns, of which the CMA claims to have received “a substantial number”. Some of Nvidia’s competitors have offered to invest in Arm if it helps the company to remain independent.

Nvidia, for its part, has promised to work with UK regulators to alleviate concerns. The company has already pledged to keep the business in the UK and hire more staff. Nvidia also announced a new AI centre in Cambridge –  home to an increasing number of leading startups in the field such as FiveAI, Prowler.io, Fetch.ai, and Darktrace – that features an ARM/Nvidia-based supercomputer, set to be one of the most powerful in the world.

Following receipt of the CMA’s report, Dowden will now make a decision on whether to ask the CMA to conduct a ‘Phase Two’ investigation.

An executive summary of the CMA’s report is available here.

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The post Nvidia-Arm merger in doubt as CMA has ‘serious’ concerns appeared first on AI News.

Over 160 billion chips have been made for various devices based on designs from Arm. In recent years, the company has added AI accelerator chips to its lineup for neural network processing.

In the wake of the proposed acquisition, Nvidia CEO Jensen Huang said:

“ARM is an incredible company and it employs some of the greatest engineering minds in the world. But we believe we can make ARM even more incredible and take it to even higher levels.

We want to propel it — and the UK — to global AI leadership.”

Given the size of the acquisition and potential impact, UK Culture Secretary Oliver Dowden referred the deal to the Competition and Markets Authority (CMA) and asked the regulator to prepare a report on whether the deal is anti-competitive.

To squash job loss concerns and avoid regulators blocking the deal, Nvidia promised to keep the business in the UK and even hire more staff.

Nvidia also announced a new AI centre in Cambridge –  home to an increasing number of leading startups in the field such as FiveAI, Prowler.io, Fetch.ai, and Darktrace – that features an ARM/Nvidia-based supercomputer, set to be one of the most powerful in the world.

However, it seems that it’s not economic concerns that could see the deal blocked.

The CMA’s report highlighted national security concerns and the UK is therefore likely to reject the acquisition. A deeper investigation is set to be launched before any final decision is made, but the deal looks to be a long shot.

“We continue to work through the regulatory process with the U.K. government,” said an Nvidia spokesperson in a statement. “We look forward to their questions and expect to resolve any issues they may have.”

If the acquisition is granted permission to proceed, it will likely come with strict conditions.

Several of Nvidia’s international rivals have offered to invest in Arm if it helps the company remain independent.

(Photo by Markus Winkler on Unsplash)

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