Summary: news on November 23, a few days agoNvidia (NVIDIA)Revenue for the third quarter ended Oct. 25 reached $4.73 billion, up 57% from a year earlier, and net profit was $1.336 billion, up 49% from a year earlier. In an interview with the media after the results were announced, Huang Renxun, CEO of Nvidia, responded to the issue of antitrust regulation involved in the acquisition of Arm, saying that he believed that "regulators will be very inclined to approve the acquisition".

A few days ago, NVIDIA (NVIDA) reported revenue of $4.73 billion, up 57% from a year earlier, and net profit of $1.336 billion, up 49% from a year earlier. In an interview with the media after the results were announced, Huang Renxun, CEO of Nvidia, responded to the issue of antitrust regulation involved in the acquisition of Arm, saying that he believed that "regulators will be very inclined to approve the acquisition".

In September this year, Nvidia announced thatSoftbank Corp.The group reached a final agreement that Nvidia will acquire Arm, a British chip design company owned by Softbank Corp. Group, for a total price of US $40 billion (including cash plus stock).

At present, Arm is the world's largest semiconductor IP supplier, almost all smartphones and mobile devices have Cortex-A series CPU and Mali series GPU IP using Arm. At the same time, in the Internet of things processor market, Arm's Cortex-M series IP also has a large market share. According to data released by Arm, hundreds of its partners shipped a total of 6.4 billion Arm chips in the fourth quarter of 2019, of which 4.2 billion chips are Cortex-M series, that is, products for the low-power embedded market, accounting for about 66%, while the rest are various Cortex-A series, Coretx-R series, and security chips. It can be said that at present, the vast majority of chip designers in the world have semiconductor IP using Arm. This also highlights the central position of Arm in the entire vast chip ecosystem based on its IP.

As the world's largest GPU manufacturer and AI computing card supplier, Huang Renxun said that AI is the most powerful technology of our time, and the integration of Nvidia and Arm will create a company with excellent positioning in the era of artificial intelligence.

After the news was announced, the outside world was not very optimistic about the deal. Many people believe that after the acquisition of Arm, the American company Nvidia will make Arm subject to the United States. At the same time, Nvidia itself competes with Arm customers, which may make Arm lose its neutrality. Especially at a time when Sino-US relations continue to be strained and the United States continues to crack down on Chinese science and technology enterprises.

Although Huang Renxun promised to continue Arm's open licensing model, maintain its customer neutrality, provide services to customers in all industries around the world, and use Nvidia's global leading GPU and AI technologies to further expand Arm's IP licensing portfolio. At the same time, it also stressed that the UK headquarters of Arm will be retained and will continue to expand, as will the Arm brand, allowing Arm to continue to provide intellectual property registration services in the UK. Arm CEO Simon Segars also said: "most of our products are not subject to US export controls, which will not change with the change of the US parent company."

However, these promises do not completely reassure the outside world. After all, these promises do not form a substantive binding clause, and Nvidia is unable to resist the decree of the United States.

Especially recently, the United States announced thatGoogle、Apple、Amazon、FacebookAfter the antitrust investigations launched by the giants and the announcement of China's planned antitrust regulations, it is still a mystery whether Nvidia's acquisition of Arm can be successfully approved by antitrust regulators in various countries.

In a recent interview with foreign media, Huang Renxun said that the current anti-monopoly has little impact on the deal. "our assessment is that regulators will be very inclined to approve the acquisition." Huang Renxun stressed that both Nvidia and Arm are engaged in highly competitive businesses. Arm has a large customer base, but they are weak in the new market where they want to make progress, and they have every reason to believe that by adding new resources to Arm, they will increase customer choices and enhance innovation.

Editor: core Zhixin-Lin Zi