By Peter Clarke
Will a minority stake in Arm be the most Nvidia is allowed? Or will Nvidia be allowed a chance to buy only a small portion of the IP licensor, such as the artificial intelligence part? And will that prompt Nvidia CEO Jensen Huang to throw in the towel on his mega-merger aspiration?
Let’s start by saying that the outcome of merger and monopoly investigations depend on how broadly or narrowly markets are defined and, similarly, on how far an antitrust regulator takes its remit. That’s why the outcomes of such probes are rarely a foregone conclusion and can depend on the political climate of the day.
But the signs are not looking good for Nvidia, the US-headquartered supplier of graphics processors and accelerator processors for data centers, and its ambition to take over Arm, the UK-based but Japanese-owned developer of processor architectures and cores for license.
Peter Clarke, a veteran reporter and analyst covering the global electronics industry, is a contributing editor for The Ojo-Yoshida Report.