Jensen Huang, CEO of Nvidia, wears his usual leather jacket.
The UK government has issued a Public Interest Intervention Notice (PIIN) on Nvidia’s proposed $ 40 billion acquisition of chip designer Arm for national security reasons.
The announcement was issued on Monday by UK digital secretary Oliver Dowden.
It’s not clear what the national security reasons are, but the Department of Digital, Culture, Media and Sports said Dowden has “considered advice from officials across the community on investment security.”
The Competition and Markets Authority has been tasked with preparing a report for Dowden on the competition and national safety aspects of the business before July 30th.
“After careful consideration of the proposed Arm takeover, I issued a notice of intervention today for national security reasons,” Dowden said in a statement. “As a next step, and to help me gather the relevant information, the UK Independent Competition Authority will now be preparing an impact report that will assist in further decisions.”
He added, “We would like to support our thriving UK tech industry and welcome foreign investment, but it is appropriate that we properly consider the national security implications of such a transaction.”
A spokesman for Nvidia said: “We do not believe this transaction will raise any significant national security issues. We will continue to work closely with the UK authorities as we have done since this deal was announced.”
Arm, currently owned by SoftBank, did not immediately respond to a CNBC request for comment.