Technology

Google, Qualcomm and Microsoft concerned about ARM’s future

One of the purchases last year was the acquisition of ARM by Nvidia. This company, ARM, is in charge of licensing the chip technology. The deal, which is being analyzed by regulators in the United States, the European Union and China, is also worrying tech companies.

Nvidia does not convince as owner of ARM

Nvidia has previously pledged not to use its control over the company to change the way it works with other companies. For this, the CEO of Nvidia, Jensen Huan said “to state unequivocally that Nvidia will maintain the model of open licenses. We do not intend to “expedite” or “deny” the supply of Arm to a customer. “

But of course, Nvidia’s rivals don’t trust these claims. A company that makes ARM chips is committed to keeping Arm neutral. Without using their technology for the benefit of Nvidia to manufacture ARM chips. It makes even less sense when you’ve paid $ 40 billion for it. A change in the licensing situation would directly harm ARM. We know that Google and Microsoft are working on their own chips. In addition, Qualcomm bases its processors on ARM licenses.

From Nvidia, they say this acquisition wants to advance AI. This is an area where Nvidia has put a lot of effort both with its graphics cards and working with self-driving cars. ARM could help bring Nvidia AI everywhere. But you also need to think about what you do with the rest of the ARM technology.

Another area that regulators are watching is whether the deal would give Nvidia too much power in chipmaking. According to CNBC, the Federal Trade Commission has asked Nvidia and Arm for more information, and it could speak to “other companies who may have relevant information.”

Meanwhile, UK and EU officials have vowed to “fully investigate” the deal. You’re likely to hear a lot of objections, not only from Google, Microsoft, and Qualcomm, but also other players in the chipmaking industry who are concerned that their deal with ARM may be upended.

These companies have experience with regulators and anti-competitive behavior. Qualcomm has had to pay various fines of hundreds of millions and sometimes billions of dollars to authorities in China, South Korea and the EU for anti-competitive licensing policies. Microsoft, of course, had its big monopoly case in the 1990s, when it faced off against the US government, and Google has recently been at the center of growing antitrust sentiment in the US and the EU.

Back to top button