Nvidia prepares to abandon $40B Arm bid (bloomberg.com)

Article summary

Nvidia is preparing to abandon its $40B bid for Arm. The comments discuss the potential implications of this decision and the current state of Arm as a company. Arm's revenue and operating margins have been relatively flat under SoftBank's ownership, despite the widespread use of their architecture. The discussion also touches on the potential benefits and drawbacks of Nvidia's acquisition of Arm.

Main themes

• Nvidia's acquisition bid
• Arm's business model
• Technological advancement
• Protectionism
• Company management
• Revenue and operating margins
• Market expectations

What commenters say

• The acquisition of Arm by Nvidia could have led to both technological advancement and protectionism.
• Arm's business model, which prioritizes widespread adoption over high revenue, has contributed to its success.
• The company's operating margins have suffered under SoftBank's ownership, dropping from 50% to below 10%.
• Nvidia's acquisition of Arm could have forced the company to be more open, but it also poses risks to Arm's customers.
• Arm's architecture has been successful in part because the company has not been too greedy, allowing it to maintain a wide range of customers.
• The market's expectation of Arm as an at-cost utility makes it challenging for the company to increase revenue without alienating customers.
• The failure of Arm to capitalize on its success is not solely due to its business model, but also due to mismanagement by SoftBank.
• The potential for Arm to become a larger company is limited by its current business model and the risks associated with changing it.