The CMA (Competition & Markets Authority) has been investigating whether the deal is anti-competitive. In August, it declared the deal does indeed raise “serious competition concerns”.

Arm founder Hermann Hauser went further and suggested the merger would amount to “surrendering the UK’s most powerful trade weapon to the US”.

Among the concerns are that Nvidia could limit competitors’ access to key technologies. The CMA claims to have received “a substantial number” of concerns from rivals and some have even offered to invest in Arm if it helps the company to remain independent.

Dorries has ‘quasi-judicial’ powers under the Enterprise Act 2002 to intervene in mergers on public interest grounds.

As part of its ‘Phase One’ report, the CMA determined the merger has the possibility of a “substantial lessening of competition across four key markets”. Those markets are data centres, Internet of Things, the automotive sector, and gaming.

Beyond the impact on competition, evidence provided from departments across government have also led the Secretary of State to deem that national security could be harmed from the merger and warrants further investigation.

“I have carefully considered the Competition and Market Authority’s ‘Phase One’ report into NVIDIA’s proposed takeover of Arm and have decided to ask them to undertake a further in-depth ‘Phase Two’ investigation,” commented Dorries.

“Arm has a unique place in the global technology supply chain and we must make sure the implications of this transaction are fully considered. The CMA will now report to me on competition and national security grounds and provide advice on the next steps.”

The CMA now has 24 weeks to conduct Phase Two of its investigation, although this could be extended by eight weeks if necessary. Upon receiving the report, the Digital Secretary could take action to remedy any adverse effects to the public interest or refer it back to the CMA.

David Bicknell, Principal Analyst, and Dr Lil Read, Analyst, on the Thematic Research Team at GlobalData, commented:

“This latest government probe is another nail in the coffin for the proposed merger between Nvidia and Arm. With proceedings likely to extend into late 2022 at the earliest, Nvidia should just abandon the deal and focus on its future away from Arm.

Ordering a security review signals that the UK government doesn’t want this bid to succeed. Couple this with an already underway EU investigation and the further prospect of a China referral, and Nvidia faces some tough questions. It is unlikely it will want the continued uncertainty of a bid that is going nowhere.

We think it is time for Nvidia to move on, and for Softbank to return Arm to where it found it—the stock market.

Nvidia’s future beyond Arm extends into the metaverse, a virtual world where users share experiences and interact in real-time within simulated scenarios. Nvidia is already targeting the metaverse as a key pillar of its future – a wise decision as GlobalData believes it will be the next big technology megatheme.”

Nvidia, for its part, has promised to work with UK regulators to alleviate concerns. The company has already pledged to keep Arm in the UK and hire more staff.

The company’s announcement of a new AI centre in Cambridge last year – which features an Arm/Nvidia-based supercomputer, set to be one of the most powerful in the world – was expected to be part of a bid to show UK regulators of the firm’s commitment to the country.

“Arm is an incredible company and it employs some of the greatest engineering minds in the world,” said Jensen Huang, CEO of Nvidia. “But we believe we can make Arm even more incredible and take it to even higher levels.”

“We want to propel it – and the UK – to global AI leadership.”

(Image Credit: UK Parliament under CC BY 3.0 license)

Looking to revamp your digital transformation strategy? Learn more about the Digital Transformation Week event taking place in Amsterdam on 23-24 November 2021 and discover key strategies for making your digital efforts a success.

The post UK Digital Secretary orders ‘Phase Two’ probe into Nvidia-Arm merger appeared first on AI News.

Speaking to industry leaders around the world, many recognise the UK as a leader in AI research and talent from its class-leading universities. Since 2014, an AI startup has launched every five days on average in the UK.

This strength has resulted in significant interest from global technology giants – including Google’s £400 million acquisition of DeepMind, and Facebook’s acquisition of Bloomsbury AI just earlier this week.

Digital Secretary Matt Hancock said:

“The UK is a digital dynamo, increasingly recognised across the world as a place where ingenuity and innovation can flourish. We are home to four in ten of Europe’s tech businesses worth more than $1 billion and London is the AI capital of Europe.

France is also doing great work in this area, and these new partnerships show the strength and depth of our respective tech industries and are the first stage in us developing a closer working relationship. This will help us better serve our citizens and provide a boost for our digital economies.”

France and the UK are looking to forge closer links between leading AI companies in each of the nations.

Speaking alongside his French counterpart, Mounir Mahjoubi, Mr Hancock will confirm the UK’s world-leading centre for AI and data – The Alan Turing Institute – is signing an agreement with the French Institute – DATAIA – to promote collaboration between the French and British sectors.

Alan Wilson, CEO of The Alan Turing Institute, said:

“The fundamental goal behind all our research is to build a data and AI enriched world for the benefit of all. In order to do this, it is critical to forge international collaborations and share our knowledge, expertise and ideas with other research centres around the world.

The Institute and DATAIA both share a vision for building research in data science and AI which crosses disciplinary boundaries and recognises the societal implications of data and algorithms. It is a pleasure to kickstart this engagement and we look forward to working with them to advance UK and French excellence in this area.”

Another area where the UK is seen as leading in AI is discussions surrounding its ethical development. The Alan Turing Institute and DATAIA will also collaborate in this area to promote fairness and transparency in the design and implementation of algorithms.

Researchers from each institute will spend time at each other’s facilities and host joint workshops.

Mr Hancock and Mr Majoubi will also sign an accord on digital government. This will commit to extending their cooperation in the digital sector – on innovation, artificial intelligence, data and digital administration.

Finally, Mr Hancock will confirm the expansion of London-based Entrepreneur First (EF) to Paris. EF aims to further help founders build leading new companies and promote ties between the nations.

The announcements are made amid the backdrop of Brexit, so it’s good to see both nations continuing to forge alliances for shared future success and prosperity.

What are your thoughts on the AI collaboration measures? Let us know in the comments.

 Interested in hearing industry leaders discuss subjects like this and sharing their use-cases? Attend the co-located AI & Big Data Expo events with upcoming shows in Silicon Valley, London and Amsterdam to learn more. Co-located with the  IoT Tech Expo, Blockchain Expo and Cyber Security & Cloud Expo so you can explore the future of enterprise technology in one place.

The post UK and France announce measures to strengthen AI ties appeared first on AI News.