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Nvidia Withdraws From Acquiring SoftBank’s Arm

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Sometime last year, Nvidia Corp had intentions in purchasing Arm Ltd, a chip company owned by Japanese multinational SoftBank. Nvidia has called off its purchase of Arm.

At the moment, SoftBank plans to go on with an IPO of Arm which is expected to happen in the fiscal year ending March 2023. Both parties (Nvidia and SoftBank) agreed to terminate the Agreement due to the significant regulatory challenges that will prevent the sealing of the transaction.

Founder and Chief Executive of Nvidia, Jensen Huang, noted that ‘Arm has a bright future and we will continue to support them as a proud license for decades to come.’ In his words, I expect Arm to be the most important CPU architecture of the next decade.

Rene Haas will be occupying the seat of Nvidia’s VP and General Manager and will succeed from Simon Segars. In an interview with TechCrunch, Rene is excited about the company’s (ARM) effort to push into the GPU and CPU marker as well as excelling in the AI space.

ARM (Advanced RISC Machines) was expected to be sold for $66 billion and would have been the largest sale in the semiconductor industry. SoftBank will receive a breakup fee of $1.25 billion for the deal’s cancellation.   

Since Nvidia announced, it was going to purchase Arm, its stocks went up but after this withdrawal, the stocks have collapsed.

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