June 9, 2023

Tor Go Devil

No game no life

Nvidia says it buying Arm will ‘spur competition’ in consoles, not hinder it

If you’re Nvidia or Arm right now, you’ve got your work cut out for you...

If you’re Nvidia or Arm right now, you’ve got your work cut out for you trying to convince the UK government that your upcoming merger is going to be worthwhile for everyone. That’s exactly what both companies are trying to do, however, and their arguments on why Nvidia should be allowed to absorb Arm for $40B have just been laid bare on the UK government website.

Nvidia’s argument boils down to a few key points:

  • Arm will no longer receive major investment from its current owners, SoftBank.
  • An Initial Public Offering (IPO) would be detrimental to Arm’s expansion, and it faces “significant challenges to growth”.
  • Nvidia will work to the benefit of all Arm licensees, and is not a competitor to Arm in any way, shape, or form.
  • Arm’s competitors are taking advantage of the delay in closing the Nvidia/Arm deal, such as Intel with its own x86 licensing and companies leveraging RISC-V.
  • Architectural licensees, such as Apple and Qualcomm, compete with Arm’s own engineers and designs.
  • Once combined, neither company will have the ability to “foreclose competition”, meaning Nvidia and Arm won’t be able to wipe out either company’s competition.
  • Even if the merged company could do that, it wouldn’t.
  • Nvidia says it is the only route to easily enforceable guarantees to customers and regulators.
  • The report ignores Arm’s desire for profit as a private business.
  • The UK’s review makes it out to be more complicated than it actually is.

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