A new rung, a new notch on the revolver and therefore a step in a direction that is curiously uncertain. NVIDIA has responded to the UK CMA before the objections of this for its acquisition of ARM. The regulator expressed its doubts and concerns about the purchase, to which NVIDIA has given a series of arguments where Intel “magically” appears in the middle as an “excuse” to settle a series of issues. What does the blue giant have to do here?
If NVIDIA buys ARM, if that acquisition is authorized, the whole world thinks that the competitiveness and freedom of licenses for SoCs and Cortex processors will pass away. Furthermore, competitors are afraid that it will be the first step to a total monopoly, not only in computing as such, but in any existing device that is based on ARM (practically anything with a chip is). Twenty-nine pages of explanations and arguments of which we will see the most important.
Softbank wants to leave ARM
The problem that ARM faces as a company in itself is that rumors that Softbank wants to jump ship in full acquisition of NVIDIA do not reinforce the company’s shares in the stock market. This lowers the value and especially the investment that could come to them, to which NVIDIA refers to the following:
As a publicly traded company, ARM may not have the financial resources to invest enough in early-stage business. NVIDIA is particularly concerned that these pressures will lead ARM to stop prioritizing the data center and PC and instead focus on its core mobile and growing IoT businesses. The result would be a concentrated CPU market controlled largely by Intel / AMD (x86), with the remainder controlled by powerful and much more profitable ARM architecture licensees.
With this, NVIDIA not only makes it clear that the price would not go well, but it would also leave the CPU market to Intel and AMD, leaving its partners in a worse position, such as Qualcomm and Apple. Furthermore, quoting Intel has a double intention due to the following statements:
X86 IP is available to all ARM clients. Intel targets data centers directly, allowing data centers to use their IPs to create custom chips. ARM’s highest-profile data center customer, Amazon, has already lined up as one of Intel’s first IFS customers. Dozens of other customers have already engaged with Intel, which is “opening the door” to their IPs and causing a “significant change in the way people think about ARM.”
Licenses and purchase of ARM, reason for dispute?
This is logically true. Intel customers now want to use their IP, their architectures, nodes and technology to create their own designs in the purest ARM style, although with certain important concessions, where for example they talk about the cancellation of future contracts, since one of these Concessions is rootedness for years, something that Intel does not contemplate and are more traditional agreements.
ARM is different, since you can license now or for a large number of years, so the controversy with the contracts is in the air and NVIDIA clarifies it well:
If the merged entity suddenly announced that it would be in breach of its contracts (and its commitments to regulators) and refused to grant licenses going forward, the licensees could still make and sell ARM-based chips for the next decade, and even sell them. longer (because all ARM licensees have perpetual manufacturing rights). Licensees would have a long time to find alternatives, with no benefit to the merged entity for many years. Consequently, the merged entity cannot exclude ARM’s customers, even if it chooses to do so.
A new chapter that has undoubtedly been very interesting, because the legal ins and outs will determine the future of the CPU in this purchase of NVIDIA towards ARM.