NNN. eyes AI deal as regulatory scrutiny looms

NNN. eyes AI deal as regulatory scrutiny looms

The deal, which is currently being investigated in global regulatory scrutiny, was brought up by the U.S. Federal Trade Commission on Thursday.

Analysts believe that the chances of the deal getting through are slim to none.

Even if Nvidia does not complete its ARM Holdings acquisition, demand for NVIDIA AI continues to increase, said Ivan Feinseth, Tigress Financial Partners' Ivan Feinseth, who said Nvidia is all about AI and the Omniverse metaverse. Nvidia, the world's largest maker of AI chips and graphics, has been doubling down on its data center business as more internet companies invest in the metaverse, an online realm that connects people through augmented and virtual reality.

The blockbuster deal would give Nvidia exposure to Arm, which licenses its chips and blueprints to major chipmakers Apple, Qualcomm, and Samsung Electronics Co Ltd, and give them a chance to dominate the global semiconductor industry.

It would put Nvidia into intense competition with rivals in the data center chip market, such as Intel and Advanced Micro Devices Inc.

What is lost by Nvidia's ability to invest in the ARM ecosystem in a more impactful way than that of SoftBank or ARM, according to WestPark Capital analyst Ruben Roy.

The FTC said the deal would give Nvidia control over computing technology and designs that competitors rely on to develop their chips.

It would be nice to have an arm. They will save the purchase price if they can't pull it off. Stacy Rasgon, a Bernstein analyst, said that the company would be fine either way.