Nvidia × Arm Acquisition

In September 2020, Nvidia announced it would pay $40B in cash and stock to acquire British chip designer Arm, but the FTC filed a law enforcement action to block the deal in February 2022. Arm heralds itself as the leading technology provider of processor IP they architect, develop, and license high-performance, low-cost, and energy-efficient IP solutions for CPUs, GPUs, NPUs and interconnect technologies. Nvidias GPU business took off due to the Generative AI boom just a year after this acquisition was announced. NVIDIA hoped to create the Worlds Premier Computing Company for the Age of AI by acquiring ARM. Reportedly over 70 of people use Arms technology. Acquiring Arm would have helped $NVIDIA expand its reach from 2M to 15M developers. Back in 2020, $ARM earned $1.8B in revenue at a whopping 94 gross margin up to $2.6B in 2023.