Nvidia has revealed the US Federal Trade Commission (FTC) has expressed concerns over the company’s $40 billion deal to acquire Arm that was announced in September last year.
Nvidia CFO Colette Kress said at the company’s Q3 results call on Wednesday evening that the FTC was reviewing the deal, and that the company has been in talks with the US regulator about how it can alleviate concerns around the deal.
She added that some Arm licensees have expressed concerns or objected to the deal.
Nvidia’s update about the FTC review comes a day after the UK government launched an in-depth antitrust investigation into the deal. The European Commission has also commenced an in-depth investigation into the deal.
Both the UK and European Commission investigations arose after initial reviews from both jurisdictions found the deal would lessen competition across various markets such as data centres, IoT, automotive sector, and gaming applications markets.
Despite the mounting regulatory pressure, Kress said the company still “believed in the merits and benefits of the acquisition to Arm, its licensees, and the industry”.
Outside of the regulatory concerns around Nvidia’s deal, the company revealed third-quarter revenues rose 9% to hit $7.1 billion, while net income jumped 84% to $2.46 billion.
CEO and co-founder Jensen Huang, who was also present at the Q3 results conference call, said Nvidia managed to secure chip supplies from its contract manufacturer during the quarter, but that the global supply chain situation has been a “wake-up call”.
“We have a secured guaranteed supply, very large amounts of it, quite a spectacular amount of it, from the world’s leading foundry, and substrate and packaging and testing companies that are an integral usual part of our supply chain,” Huang said.
A day after the conference call, Nvidia has also announced that its cloud game-streaming service GeForce Now will be coming to some LG TVs through a new app.
The app will allow owners of compatible LG TVs to play 35 free-to-play games that are on GeForce Now, the companies said.
A beta version of the app is now available in the LG content store on select 2021 LG 4K OLED, QNED Mini LED, and NanoCell TV models in 80 markets.