The US chipmaker has told partners that it does not expect
the deal to close, while SoftBank is stepping up preparations for an initial
public offering (IPO) of Arm, the report said.
An Nvidia spokesperson said the company continues to believe
the acquisition "provides an opportunity to accelerate Arm and boost
competition and innovation." Arm and SoftBank did not immediately respond
to Reuters requests for comment.
Nvidia shares were down 3.2 percent before the bell, leading
losses among chipmakers in a broadly weaker market.
The deal has faced several regulatory hurdles, with the US
Federal Trade Commission suing to block it in December. The buyout is also
under the scrutiny of British and EU regulators.
Jonathan Kanter, the new head of the US Justice Department
Antitrust Division, has said he would seek to stop mergers that pose
anticompetitive concerns rather than striking deals for concessions that would
allow the transaction to close.
The stock-heavy deal for Arm has risen in value since it was
announced in September 2020 due to a surge in shares of Nvidia sparked by
strong growth of its data center-focused chip business.
Arm's CEO said in July last year that the company had
contemplated an IPO but that would hurt its ability to expand and invest.