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Arm founder urges British authorities to buy out company assets to prevent NVIDIA from taking over
13.10.2021 [09:19],
Alexey Razin

Arm co-founder Hermann Hauser has already shared his concerns about the disastrous consequences of the deal with NVIDIA. This week, he spoke to the UK parliament’s profile committee to call for an end to another US monopoly by pushing Arm to go public instead of a deal with NVIDIA.

Image Source: Business Weekly

Hermann Hauser explained his open position by his lack of shares in Arm and any obligations to the company he created. It is for this reason that he can talk about issues that current Arm executives cannot mention in their comments. According to the founder of the company, the deal with NVIDIA will contribute to the emergence of another American monopoly, with the actions of which the British authorities are trying to fight.

«Technological sovereignty» is another factor that pushes the British authorities against this deal. With assets in the form of Arm development, the UK can act as a strong partner in foreign trade negotiations, without which the country will already lose convincing arguments. According to Hauser, NVIDIA’s commitment to integrating its graphics architectures into Arm processors will quickly increase the influence of American developments to such an extent that all Arm solutions will be subject to US export control laws. This will remove Arm’s developments from British influence, Hauser says.

Most of all, he is concerned about NVIDIA’s ambitions in the server segment of the market. Intel has recently demonstrated its weakness, NVIDIA can use the Arm architecture to strengthen its position in the server processor segment, limiting other clients’ access to advanced Arm-compatible architectures. The danger is too great that NVIDIA will sooner or later begin to abuse its powers in building relationships with Arm customers.

Arm development is an important piece of UK national infrastructure, Hauser says. If you transfer control over them to the American side, then any changes in the political environment can harm not only the image of Great Britain, but also its economy. Hauser has called for an alliance of Arm clients to bring shares to stock exchanges with the support of British pension funds and other investors, leaving a controlling stake in the British government. This is the only way to protect Arm assets from outside encroachment, according to Hermann Hauser.

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