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Nvidia’s $40bn takeover of UK chip designer Arm collapses | Technology sector

Nvidia’s $40bn (£29.6bn) takeover of the Cambridge-based Arm has collapsed due to insurmountable regulatory hurdles, leaving the British chip designer to seek a stock market flotation in the next year as an alternative.

The deal, which would have been the largest in the semiconductor industry, had become mired in red tape on both sides of the Atlantic and in China and had alsofaced fierce opposition from players within the industry since it was announced in September 2020.

Japan’s Softbank acquired Arm – which has more than 500 clients that use its chip designs, including Apple, Samsung and Google, in products ranging from iPads and mobile phones to cars and smart TVs – for $32bn in 2016.

In a joint statement, Softbank and Nvidia said they had decided to terminate the deal due to “significant regulatory challenges preventing the consummation of the transaction, despite good faith efforts by the parties”.

The cash and stock deal was worth about $40bn when it was announced 18 months ago, but has dramatically increased to as much as $75bn as Nvidia’s share price has soared.

Softbank moved quickly to announce it is to revert to its backup plan of an initial public offering to cash in on Arm, and will receive a $1.25bn break-up fee from Nvidia.

The chip designer, which employs 6,500 staff including 3,000 in the UK, also announced a management shake-up with the chief executive, Simon Segars, replaced by Rene Haas, head of Arm’s intellectual property unit who previously worked at Nvidia for seven years, to lead the publicly listed company.

“Rene is the right leader to accelerate Arm’s growth as the company looks to re-enter the public markets,” the SoftBank chief executive, Masayoshi Son, said in the statement from Arm. “We will take this opportunity and start preparing to take Arm public, and to make even further progress.”

Nvidia said that despite the failed takeover it would remain a close partner due to Arm’s strategic importance in the global chip industry.

“Arm is at the centre of the important dynamics in computing,” said Jensen Huang, the founder and chief executive of the California-based Nvidia. “I expect Arm to be the most important [computer processing unit] architecture of the next decade.”

The US Federal Trade Commission dealt a hammer blow to the prospect of successful takeover, launching legal action in December to block what it called an “illegal vertical merger” that would give Nvidia too much market power.

Last year, the UK ordered an in-depth investigation into the deal, citing competition and national security concerns, while the EU and China had also raised serious concerns.

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SoftBank said on Tuesday that Arm would prepare for a stock market flotation before the end of the financial year to 31 March 2023. While no decision has been made on where to list the company, it is understood that the US is favoured as it generally results in higher valuations for technology stocks.

Many of Arm’s extensive client base said that takeover by Nvidia would end its status as the Switzerland of the semiconductor industry, with the US company able to control the technology and licensing of chip designs to rivals.

In 2018, the US company Qualcomm abandoned its $44bn, two-year pursuit of the Dutch chip maker NXP after failing to secure approval in China, a victim of a trade dispute between Beijing and Washington.

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Majority of Businesses (82%) Set to Boost R&D Funding in the Next Three Years

Businesses And R&D Funding

More than 78% of R&D professionals believe that an enhanced 50% R&D tax credit will incentivise green tech development

A recent report by the Industry Research and Development Group (IRDG) and KPMG sheds light on the state of Research and Development (R&D), highlighting the urgent need for increased funding to keep pace with other leading innovation-driven nations. Titled ‘Ireland’s Innovation Index,’ the report presents insights gathered from a survey of 394 respondents representing various sectors, including engineering, technology, medical, and software.

Growing Ambitions for R&D Investment

The findings of the report reveal that a significant majority (80%) of respondents plan to boost their R&D expenditure in the next three years, while 67% have already increased their R&D budgets over the past three years. Encouragingly, only a mere 4% anticipate a decrease in future R&D spending. This heightened commitment to R&D investment underscores its critical role in driving economic growth and competitiveness.

R&D Landscape

Ireland has demonstrated commendable performance in the realm of R&D, with a substantial proportion (69%) of multinational companies considering Irish R&D grants and tax supports on par with or even superior to those offered by other countries. Only 31% expressed a less favorable opinion. Moreover, 64% of the survey respondents have taken advantage of the Research and Development Tax Credit (RDTC), while 53% have availed themselves of semi-state grant supports. These figures indicate the value that companies place on government incentives to support their innovation endeavors.

The Need for Increased Funding

Despite the positive strides made, the report highlights the pressing need for Ireland to bolster its R&D funding to match the levels seen in leading innovation-driven nations. According to the IRDG, an additional €2 billion in funding is required to bridge this gap effectively.

Embracing Sustainability and Digitalization

The report also emphasizes the potential of enhanced R&D funding in promoting green tech development. An overwhelming 78% of R&D professionals believe that an improved 50% R&D tax credit would serve as a powerful incentive to drive innovation in sustainable technologies. This highlights the need to align R&D investment with the challenges of sustainability and digitalization, ensuring continued economic prosperity and positioning Ireland as a global leader in these areas.

The Importance of Support for SMEs and FDI

Dermot Casey, CEO at IRDG, underscores the significance of increased investment in innovation, particularly in supporting innovative small and medium-sized enterprises (SMEs) to create the next generation of Irish success stories, akin to industry leaders like Kingspan and Fexco. Additionally, such investment is crucial to bolster the Foreign Direct Investment (FDI) sector. Businesses are poised to invest, but they require robust support to overcome challenges related to accessing skills, talent, and administrative burdens.

Competition in the Global Landscape

Ken Hardy, head of KPMG’s R&D incentives practice, draws attention to the intense competition among European jurisdictions, including neighboring countries like the UK, which are actively vying to attract R&D activities. In light of this landscape, Ireland must fortify its support systems and allocate a more substantial budget to maintain its competitiveness. Hardy commends the positive sentiment among over two-thirds of Irish RD&I professionals who view Ireland’s support systems as comparable to those of other countries.

Charting the Path Forward

The report underscores the urgent need for Ireland to bolster its investment in R&D, both to stimulate innovation and to address the challenges presented by sustainability and digitalization.

By increasing funding and providing comprehensive support to innovative companies, Ireland can seize opportunities for economic growth and maintain its position as a global hub for research and development. The collective efforts of industry, government, and academia will be instrumental in driving Ireland’s innovation agenda and securing a prosperous future.


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— By Team VoiceOfEU.com

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Ways Small & Medium-Sized Businesses Can Hire Big Tech Talent

In response to mounting financial concerns, tech giants like Amazon, Microsoft, and Alphabet (Google’s parent company) have recently implemented significant staff cuts. This has prompted industry leaders to reevaluate their hiring practices, recognizing the limitations of Big Tech’s ability to weather challenging economic times.

While the tech industry’s overall stability is assured, the combination of a declining economy and a previous surge in hiring has resulted in substantial job losses. However, this situation also presents an opportunity for small businesses and start-ups to tap into a pool of available tech experts.

To capitalize on this unique scenario, small and medium-sized business (SMB) owners must act swiftly to gain a competitive advantage over larger companies and attract highly skilled candidates.

In this article, John Elf, Technology Contributor at ‘Voice of EU’ and Head of Marketing at Vibertron Technologies, provides insights into some simple but effective strategies for attracting talent in a candidate-heavy market.

Small and medium-sized businesses (SMBs) can leverage consulting services to attract the best talent, just like big tech companies do. Here’s how SMBs can make use of consulting services to enhance their talent acquisition efforts:

1. Talent Acquisition Strategy Development: SMBs can engage consulting firms specializing in talent acquisition and HR strategies to help them develop a comprehensive talent acquisition strategy. These consultants can assess the organization’s needs, identify talent gaps, and devise effective recruitment and sourcing strategies tailored to the SMB’s specific industry and requirements. This strategic approach ensures that the SMB is targeting the right candidates and maximizing its resources.

2. Employer Branding and Positioning: Consulting firms experienced in employer branding can assist SMBs in developing a strong employer brand that resonates with their target talent pool. They can help SMBs articulate their unique value proposition, culture, and growth opportunities, ensuring that the organization stands out as an attractive employer. These consultants can also provide guidance on how to effectively communicate the employer brand across various channels to attract the best talent.

3. Recruitment Process Optimization: Recruitment service provider can help SMBs, same as LCEs, optimize their recruitment processes, making them more efficient and effective. Consultants can review and streamline the entire hiring process, from job postings and candidate screening to interview techniques and selection methodologies. By improving the candidate experience and ensuring a smooth and timely process, SMBs can enhance their reputation as an employer of choice.

4. Candidate Sourcing and Evaluation: Consulting firms specializing in talent acquisition can assist SMBs in sourcing and evaluating candidates. They can leverage their networks and resources to identify top talent and conduct thorough assessments, including skill evaluations, cultural fit analysis, and background checks. By leveraging external expertise, SMBs can access a broader candidate pool and make well-informed hiring decisions.

5. Compensation and Benefits Consulting: Attracting and retaining top talent often requires competitive compensation and benefits packages. SMBs can engage consulting firms that specialize in compensation and benefits to ensure their offerings align with industry standards and meet the expectations of high-caliber candidates. These consultants can provide insights into market trends, salary benchmarks, and innovative benefit options, enabling SMBs to remain competitive in talent acquisition.

6. Training and Development Programs: SMBs can leverage consulting services to design and implement training and development programs. These programs not only help attract talent but also contribute to employee retention and growth.

Consultants can identify skill gaps, design customized training modules, and provide guidance on employee development initiatives, ensuring that SMBs create a culture of continuous learning and professional advancement.

By utilizing consulting services in talent acquisition, SMBs can access specialized expertise, best practices, and industry insights that are typically associated with larger companies. This approach enables SMBs to compete for top talent on a more level playing field, enhancing their ability to attract and retain the best candidates.


By John Elf

John Elf is Head of Marketing at Vibertron Technologies, and an Honorary Contributor at ‘Voice of EU’. A version of this article has already been published.


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Congratulations, Privacy Just Took A Great Leap Out the Window!

Your Data Is Being Used Without Your Permission And Knowledge

The Voice Of EU | In the heart of technological innovation, the collision between intellectual property rights and the development of cutting-edge AI technologies has sparked a significant legal battle. The New York Times has taken legal action against OpenAI and Microsoft, filing a lawsuit in Manhattan federal court. This legal maneuver aims to address concerns surrounding the unauthorized use of the Times’ content for the training of AI models, alleging copyright infringements that could potentially result in billions of dollars in damages.

READ: HOW YOUR DATA IS BEING USED TO TRAIN A.I.

This legal tussle underlines the escalating tension between technological advancements and the protection of intellectual property. The crux of the lawsuit revolves around OpenAI and Microsoft allegedly utilizing the Times’ proprietary content to advance their own AI technology, directly competing with the publication’s services. The lawsuit suggests that this unauthorized utilization threatens the Times’ ability to offer its distinctive service and impacts its AI innovation, creating a competitive landscape that challenges the publication’s proprietary content.

Amidst the growing digital landscape, media organizations like the Times are confronting a myriad of challenges. The migration of readers to online platforms has significantly impacted traditional media, and the advent of artificial intelligence technology has added another layer of complexity. The legal dispute brings to the forefront the contentious practice of AI companies scraping copyrighted information from online sources, including articles from media organizations, to train their generative AI chatbots. This strategy has attracted substantial investments, rapidly transforming the AI landscape.

Exhibit presented by the New York Times’ legal team of ChatGPT replicating a article after being prompted

The lawsuit highlights instances where OpenAI’s technology, specifically GPT-4, replicated significant portions of Times articles, including in-depth investigative reports. These outputs, alleged by the Times to contain verbatim excerpts from their content, raise concerns about the ethical and legal boundaries of using copyrighted material for AI model training without proper authorization or compensation.

The legal action taken by the Times follows attempts to engage in discussions with Microsoft and OpenAI, aiming to address concerns about the use of its intellectual property. Despite these efforts, negotiations failed to reach a resolution that would ensure fair compensation for the use of the Times’ content while promoting responsible AI development that benefits society.

In the midst of this legal battle, the broader questions surrounding the responsible and ethical utilization of copyrighted material in advancing technological innovations come to the forefront.

The dispute between the Times, OpenAI, and Microsoft serves as a significant case study in navigating the intricate intersection of technological progress and safeguarding intellectual property rights in the digital age.


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