The graphics giant Nvidia abandoned the acquisition of ARM, the chipmaker, for $40 billion. The two companies issued a joint statement, citing ‘serious regulatory concerns’.
Nvidia will pay SoftBank $1.25 billion as a breakup fee.
ARM CEO Simon Segars will step down after 30 years in the post. He will be succeeded by the head of the company’s IP business, Rene Haas.
SoftBank also announced preparations for ARM’s IPO. According to the announcement, it is scheduled to take place by March 31, 2023. The company said that ARM’s technologies and intellectual property would continue to be at the heart of mobile computing and AI development.
Nvidia announced the purchase of the British chipmaker for $40 billion in September 2020. Several ARM partners, including Qualcomm, Google and Microsoft, as well as regulatory authorities in many countries, opposed the merger.
Earlier in April 2021, the UK government intervened in the deal on national security grounds.
In August, regulator launched the second phase of the investigation, freezing the deal for an indefinite period.
In December, the US Federal Trade Commission filed suit seeking to block the Nvidia-ARM merger.
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