Nvidia officially ends its purchase of Arm

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Nvidia is officially ending its planned purchase of Arm from SoftBank.

Details: SoftBank confirmed the news in a statement Tuesday announcing plans for an initial public offering for Arm in the fiscal year ending March 31, 2023.

  • Arm said in a statement that CEO Simon Segars is stepping down, effective immediately. Rene Haas, president of the company’s IP group and former vice president of Nvidia, takes over.
  • “Rene is the right leader to accelerate Arm’s growth as the company seeks to re-enter the public markets,” SoftBank CEO Masayoshi Son said in a statement.

why is it important: There had been significant concerns from regulators and several current Arm customers, according to the Financial Times, which first reported on the collapse.

  • Although it doesn’t manufacture processors, or even design entire chips, Arm’s processor cores are widely used in everything from smartphones to cars to networking gear.

Quick catch up: Nvidia, which is among the companies selling chips based on Arm’s designs, had promised to keep the British company’s open licensing model, but that wasn’t enough to quell concerns that the technology would be in uncertain hands if it was controlled by a chipmaker that relied on its designs.

  • Nvidia first announced plans to buy Arm in September 2020.
  • SoftBank acquired Arm in 2016. Prior to that, Arm was an independent, publicly traded company.

Editor’s Note: This article has been updated with termination details.

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