Beautiful Virgin Islands

Tuesday, Jan 20, 2026

Is chip giant Nvidia going to scrap its $40BN bid for Arm?

Is chip giant Nvidia going to scrap its $40BN bid for Arm?

Nvidia’s proposed purchase of Arm Inc has drawn a fierce backlash from regulators and the chip industry.

Nvidia Corp. is quietly preparing to abandon its purchase of Arm Ltd. from SoftBank Group Corp. after making little to no progress in winning approval for the $40 billion chip deal, according to people familiar with the matter.

Nvidia has told partners that it doesn’t expect the transaction to close, according to one person, who asked not to be identified because the discussions are private. SoftBank, meanwhile, is stepping up preparations for an Arm initial public offering as an alternative to the Nvidia takeover, another person said.

The purchase – poised to become the biggest semiconductor deal in history when it was announced in September 2020 – has drawn a fierce backlash from regulators and the chip industry, including Arm’s own customers. The U.S. Federal Trade Commission sued to stop the transaction in December, arguing that Nvidia would become too powerful if it gained control over Arm’s chip designs.

The acquisition also faces resistance in China, where authorities are inclined to block the takeover if it wins approvals elsewhere, according to one person. But they don’t expect it to get that far.

Both Nvidia and Arm’s leadership are still pleading their case to regulators, according to the people, and no final decisions have been made. And through it all, the companies have publicly maintained their commitment to the purchase.

“We continue to hold the views expressed in detail in our latest regulatory filings – that this transaction provides an opportunity to accelerate Arm and boost competition and innovation,” Nvidia spokesman Bob Sherbin said.

“We remain hopeful that the transaction will be approved,” a SoftBank spokesperson said in an emailed statement.

Shares in Nvidia fell as much as 5.6% in New York on Tuesday. SoftBank’s U.S. depository shares fell 4.8%.


If Nvidia manages to get the deal over the line, it would be a massive coup for Chief Executive Officer Jensen Huang, who has built a graphics-card business into a chipmaking empire. Already, he’s sitting atop the most valuable U.S. company in the semiconductor industry, with a market capitalization of more than half a trillion dollars.

But it will be an uphill fight. Qualcomm Inc. pulled the plug on its $44 billion takeover of NXP Semiconductors NV in 2018 after nearly two years of regulatory hurdles.

The sale of Arm is under heavy scrutiny because its chip designs are used in everything from phones to cars to factory equipment, making neutrality the foundation of its business model. The world’s biggest tech companies rely on Arm technology, and they fear they could lose unfettered access under Nvidia.

Tech giants have lined up against the takeover. A group that includes Qualcomm, Microsoft Corp., Intel Corp. and Amazon.com Inc. have provided regulators around the world with what they believe is enough ammunition to kill the deal, according to people familiar with the process. In addition to needing approval in the U.S. and China, the Arm purchase needs clearance from the European Union and the U.K., both of which are studying the deal closely.

The ordeal has created divisions within Nvidia. Some people at the company are resigned to the acquisition’s defeat, but others think management could use the FTC trial to demonstrate the merits of the transaction.

Within SoftBank, there are factions that want to let the process play out – especially since a gain in Nvidia’s stock price has made the transaction more valuable. Even after a recent tumble, Nvidia shares have nearly doubled since the Arm deal was announced. That’s added tens of billions of dollars to the initial $40 billion price tag.

Others at SoftBank would prefer to pursue an IPO for Arm sooner, while the chip industry is still considered attractive to investors. Already, concerns about a slowdown are growing.

The initial agreement between Nvidia and SoftBank expires Sept. 13 – two years after it was forged – but will automatically renew if approvals take longer. Nvidia said at the outset that closing the transaction would take “approximately 18 months.” That timeline would suggest completion around March of this year — something that’s no longer likely.

The FTC lawsuit alone could take months. And the European Commission and the U.K.’s antitrust watchdog will have to weigh in.

SoftBank and Arm are entitled to keep $2 billion Nvidia paid at signing, including a $1.25 billion breakup fee, whether the deal goes through or not.

Nvidia also has to get signoff from Chinese authorities at a time when trade tensions are running high. The U.S. has sought to prevent China’s semiconductor industry from getting access to the latest technology. Many of the country’s fledgling chipmakers are Arm customers, giving Beijing extra incentive not to let the technology pass into U.S. ownership.

In arguing against the deal, companies like Qualcomm, Intel and Google have said that Nvidia can’t preserve Arm’s independence because it’s an Arm customer itself. Nvidia, the largest maker of graphics chips, competes with Intel in server processors and is expanding into new areas that would put it in direct competition with many other Arm licensees.

Nvidia also supplies chips to businesses such as Amazon’s AWS and Microsoft’s Azure, providing technology that handles artificial intelligence processing in data centers. Those companies also are developing their own chips, making Nvidia both a supplier and a potential rival.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
High-Speed Train Collision in Southern Spain Kills at Least Twenty-One and Injures Scores
Meghan Markle May Return to the U.K. This Summer as Security Review Advances
Trump’s Greenland Tariff Threat Sparks EU Response and Risks Deep Transatlantic Rift
Prince Harry’s High Court Battle With Daily Mail Publisher Begins in London
Trump’s Tariff Escalation Presents Complex Challenges for the UK Economy
UK Prime Minister Starmer Rebukes Trump’s Greenland Tariff Strategy as Transatlantic Tensions Rise
Prince Harry’s Last Press Case in UK Court Signals Potential Turning Point in Media and Royal Relations
OpenAI to Begin Advertising in ChatGPT in Strategic Shift to New Revenue Model
GDP Growth Remains the Most Telling Barometer of Britain’s Economic Health
Prince William and Kate Middleton Stay Away as Prince Harry Visits London Amid Lingering Rift
Britain Braces for Colder Weather and Snow Risk as Temperatures Set to Plunge
Mass Protests Erupt as UK Nears Decision on China’s ‘Mega Embassy’ in London
Prince Harry to Return to UK to Testify in High-Profile Media Trial Against Associated Newspapers
Keir Starmer Rejects Trump’s Greenland Tariff Threat as ‘Completely Wrong’
Trump to hit Europe with 10% tariffs until Greenland deal is agreed
Prince Harry Returns to UK High Court as Final Privacy Trial Against Daily Mail Publisher Begins
Britain Confronts a Billion-Pound Wind Energy Paradox Amid Grid Constraints
The graduate 'jobpocalypse': Entry-level jobs are not shrinking. They are disappearing.
Cybercrime, Inc.: When Crime Becomes an Economy. How the World Accidentally Built a Twenty-Trillion-Dollar Criminal Economy
The Return of the Hands: Why the AI Age Is Rewriting the Meaning of “Real Work”
UK PM Kier Scammer Ridicules Tories With "Kamasutra"
Strategic Restraint, Credible Force, and the Discipline of Power
United Kingdom and Norway Endorse NATO’s ‘Arctic Sentry’ Mission Including Greenland
Woman Claiming to Be Freddie Mercury’s Secret Daughter Dies at Forty-Eight After Rare Cancer Battle
UK Launches First-Ever ‘Town of Culture’ Competition to Celebrate Local Stories and Boost Communities
Planned Sale of Shell and Exxon’s UK Gas Assets to Viaro Energy Collapses Amid Regulatory and Market Hurdles
UK Intensifies Arctic Security Engagement as Trump’s Greenland Rhetoric Fuels Allied Concern
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
×