US regulators file a lawsuit to block Nvidia’s multibillion-dollar purchase of UK chip design company division from Softbank, according to a report by FT on Friday.
- The Federal Trade Commission stated the cash and stock transaction valued at $82 billion would give one of the world’s biggest chip company control over computing technology and designs that competitors use to develop their own chips.
- The concerns echo those raised by UK regulators after they experienced their opposition to the deal in the summer.
- The FTC alleged that Nvidia will gain both “the means and motivation to restrict innovative next-generation technologies, highlighting concerns about automated driving systems.
- Holly Vedova, director of the FTC’s bureau of competition stated that the regulator was working to prevent a chip conglomerate from stifling the innovation platform for next-generation technologies.
The regulator fixed the value of the chip deal at $40 billion, even though Nvidia’s rising share price in the 14 months. NVDA down -0.75%, Pre-market trading