Daily Management Review

Tesla opposes Nvidia's purchase of UK chip developer Arm


Elon Musk opposed acquisition of British chip maker Arm for $40 billion by the U.S. Nvidia. Amazon and Samsung also consider the deal a threat to competition.

NVIDIA Corporation via flickr
NVIDIA Corporation via flickr
Founder and head of Tesla, billionaire Elon Musk opposes acquisition of British chipmaker Arm for £29 billion ($40 billion) by the U.S. Nvidia, multiple sources told The Telegraph newspaper.

According to them, Tesla has expressed concern that the deal would be a threat to competition. The newspaper adds that Amazon and Samsung also protested against the deal to the U.S. authorities.

Amazon and Samsung declined to comment. Tesla did not respond to the newspaper's request.

Earlier, watchdogs took an interest in the deal, which would become the largest in the chip market. The U.S. Federal Trade Commission has been investigating since the beginning of this year and the results are expected in the coming weeks. 

In the U.K., the Competition and Markets Authority warned that the deal raises "serious" concerns. The British minister for digital technology, Oliver Dowden, will decide whether the deal poses a threat to British national security.

In addition, Nvidia could start seeking approval from EU antitrust regulators in early September, people familiar with the matter told Reuters.

source: reuters.com