From CNET: The US Federal Trade Commission said Thursday that it's suing to block Nvidia's takeover of chip designer Arm. The deal, worth $40 billion, would give Nvidia "control over the computing technology and designs that rival firms rely on to develop their own competing chips," according to the FTC.
The FTC alleges the combined Nvidia-Arm company "would have the means and incentive to stifle innovative next-generation technologies, including those used to run data centers and driver-assistance systems in cars."
"Tomorrow's technologies depend on preserving today's competitive, cutting-edge chip markets," said FTC Bureau of Competition Director Holly Vedova. "This proposed deal would distort Arm's incentives in chip markets and allow the combined firm to unfairly undermine Nvidia's rivals."
Arm licenses chip designs and related technology to companies like Apple, Samsung and Qualcomm. Nvidia's acquisition would give new reach to Nvidia, which has done well with chips that accelerate graphics and AI but not the central processors designed by companies like Intel, Qualcomm and Apple. But it's raised hackles with Arm licensees, many of which compete directly with Nvidia and are leery of Nvidia's promises to preserve Arm's independence and neutrality.
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