London Daily

Focus on the big picture.
Tuesday, Aug 25, 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

0:00
0:00
Close
Premier League Season Opens With Managerial Debuts and Dramatic Early Fixtures
England Cricket Drops Brydon Carse From Selection Pending Club Investigation
Graeme Dott Convicted of Child Sexual Abuse Offences in Scotland
Protesters Occupy British Aircraft Parts Factory Over Alleged Military Links to Israel
More Than 100 Former British and French Diplomats Call for Sanctions on Israel
Ipsos Poll Shows British Public Split Between Immigration Controls and Economic Growth
British Cybersecurity Agencies Raise Alert Over Growing Threats to Critical Infrastructure
Two-Thirds of England Now Under Official Drought Conditions After Prolonged Summer Heat
Institute of Directors Calls for Urgent Action to Revive Britain’s Stagnant Labour Market
Andy Burnham Visits Kyiv on First Foreign Trip and Pledges Continued British Support for Ukraine
New Daily Diabetes and Weight-Loss Pill Launches in UK Pharmacies
UK Payroll Employment Falls by 94,000 as Labour Market Cools
Onshore Wind Planning Applications in England Reach Ten-Year High After Rules Eased
UK Government Demands Social Media Platforms Remove Dangerous Driving Content After A66 Crash
Thames Water Creditors Face Backlash Over Proposed Corporate Restructuring
Twelve Arrested After Fatal A66 Crash Linked to Organised Crime Investigation
UK Household Energy Debt Could Reach £7 Billion by Year-End
UK Defence Ministry to Use Ukraine Battlefield Data to Train AI Security Systems
UK Government Redirects £4 Billion of Affordable Homes Funding Away From Social Housing
UK Government Borrowing Reaches £1.8 Billion in July, Exceeding Forecasts
UK Prime Minister Andy Burnham Pledges Advanced Missile Support for Ukraine
8Bank of England Holds Interest Rate at 3.75% as Middle East Energy Risks Rise
Prime Minister Andy Burnham to Give Ukraine Classified Storm Shadow Blueprints for Domestic Missile Production
UK Graduate Job Vacancies Plunge 45% to Lowest Levels on Record
Government Audit Reveals Pressure on UK Hospitality From Business Rates and Rising Costs
Kindertransport Survivor Prepares to Revisit European Sites Linked to Her Family’s Wartime Separation
Northern England Transport Operators Strengthen Contingency Plans as Travel Demand Rises
New Implant Trials Offer Treatment Prospects for Patients With Refractory Angina
South Wales Reviews Wildfire Response After Exceptionally Dry Summer
UK Treasury Prepares Autumn Fiscal Statement Amid Spending and Defense Pressures
Norfolk Records First Wild Beaver Births in More Than Five Hundred Years
Historic Portrait of Benjamin Disraeli Reported Missing From Parliament’s Art Collection
Five People, Including Police Officers, Killed in A66 Crash as Families Pay Tribute
Most English Secondary Schools Found to Fall Short of National Healthy Food Standards
UK Think Tank Says Productivity Growth May Be Stronger Than Official Data Shows
Reform Party Proposes Lower Social Housing Priority for Foreign-Born UK Citizens
UK Government Plans Business Rate Overhaul to Ease Pressure on Pubs and Hotels
New Daily Diabetes and Weight-Loss Pill Launches Across NHS Pharmacies in England
UK Graduate Job Vacancies Fall to Lowest Level in a Decade
UK Prime Minister Andy Burnham Visits Kyiv to Reaffirm Long-Term Military Support for Ukraine
Iranian Hackers Shut Down British Power Plant for Four Days in Landmark Cyber Attack
Novak Djokovic Reveals Relentless Self-Doubt and Rejects Retirement in New Documentary
Trump Imposes 50% Tariffs on Canadian Goods After Bilateral Trade Talks Collapse
First Bus Bars Unaccompanied Under-Sixteens From Evening Services in Stoke-on-Trent
Lithium-Ion Battery Fires Cost UK Waste Sector About One Billion Pounds a Year
Reform UK Proposes Lower Social Housing Priority for Foreign-Born Naturalised Citizens
UK Government Deploys AI Drones in Crackdown on Illegal Waste Dumping
EU Biometric Border Checks Cause Disruption for British Travellers and Freight Operators
UK Expands Voluntary Drug Treatment Programme for Sex Offenders to Twenty Prisons
CrossCountry Cancels Most Services After Major Power Failure at Control Centre
×