UK Stalls NVIDIA's Acquisition of Arm to Investigate "National Security Concerns"

The UK government has stalled NVIDIA's $40 billion acquisition of Arm by constituting an investigation in "public interest." This investigation will look into the national security implications to the UK, of the acquisition. Although Arm is being transacted between Japan's SoftBank Holdings and American NVIDIA, Arm itself is a UK-based entity. The Competition and Markets Authority (CMA) will lead the investigation, and file a report with the UK government by June 30, 2021.

NVIDIA responded to the development, stating that the acquisition has no material national-security issues affecting the UK. "We will continue to work closely with the British authorities, as we have done since the announcement of this deal," NVIDIA stated. Leading tech firms, namely Google, Qualcomm, and Microsoft, etc., voiced apprehensions over the deal. Unlike SoftBank, NVIDIA is a chip-designer in its own right, and could withhold cutting-edge Arm technology to itself, giving its CPUs/SoCs a competitive edge over other Arm licensees, these firms believe.