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F.T.C. Sues to Stop Blockbuster Chip Deal Between Nvidia and Arm

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Nvidia chips.

In a statement, Nvidia said it would contest the F.T.C. lawsuit.

Credit: Christie Hemm Klok/The New York Times

The Federal Trade Commission on Thursday sued to block Nvidia's $40 billion acquisition of a fellow chip company, Arm, halting one of the biggest semiconductor industry deals in history, as federal regulators push to rein in corporate consolidation.

The F.T.C. said the deal between Nvidia, which is based in California and makes chips, and Arm, a British company that designs chips, would stifle competition and harm consumers. The proposed deal would give Nvidia control over computing technology and designs that rival firms rely on to develop competing chips.

"Tomorrow's technologies depend on preserving today's competitive, cutting-edge chip markets," said Holly Vedova, the director of the F.T.C.'s competition bureau. "This proposed deal would distort Arm's incentives in chip markets and allow the combined firm to unfairly undermine Nvidia's rivals."

From The New York Times
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