deal with NVIDIA will be a disaster for the entire industry

deal with NVIDIA will be a disaster for the entire industry


The story of the possible purchase by NVIDIA of the British chip developer ARM, which belongs to the Japanese SoftBank, has acquired a new turn. While many in the industry agree that the deal will benefit NVIDIA a lot, ARM co-founder Hermann Hauser believes the deal could be disastrous for the market.

Hauser expressed this opinion in an interview with the BBC, where he directly indicated that he was against NVIDIA buying ARM. At the same time, he added that he had no hopes that the deal would ultimately fail.

‚ÄúThis is one of the fundamental mistakes of the ARM business model – the ability to buy it by any company in the market. The only advantage of Softbank was that initially this company was not engaged in business related to the development of chips. Thanks to this, ARM has always remained neutral to some extent. If it becomes part of NVIDIA, then the majority of ARM technology licensees, who are direct competitors to NVIDIA, will have to look for alternative options. “– Hauser commented.

ARM clients, we recall, are Intel, Apple, Qualcomm, Huawei, Samsung, TSMC, NVIDIA itself and many other companies. According to Hauser, SoftBank’s interest in selling ARM actually opens up new opportunities for the latter. He thinks the British government should take a closer look at the purchase of the company. For the latter, it would be a great opportunity to bring the Cambridge-based microelectronics technology developer back home.

“Great opportunity: offer SoftBank the money it needs, bring ARM home and make it a public company with the backing of the British government.”Hauser added.

It is not yet clear whether NVIDIA will actually be able to buy ARM in whole or only part of its assets, as the latest news indicates. On the other hand, there is no doubt that the Greens are serious in their intentions and expect an agreement to be reached in August. But in any case, such a deal will certainly arouse the interest of antitrust regulators and will take place only after a thorough check.

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