Nvidia's US$40 billion deal to buy Arm is all but dead – it's a classic example of geopolitics killing innovation

By Howard Yu, Professor of Management and Innovation, International Institute for Management Development (IMD)

Under normal circumstances, US tech giant Nvidia’s takeover of British chip designer Arm for US$40 billion (£29 billion) would have sailed through without registering beyond the computing industry. Instead, it has made international headlines, with UK and EU monopolies regulators launching an in-depth investigation after outcry from competitors.

In effect, the deal is pretty much dead before it starts. At the heart of this lies a row about technological sovereignty. So what is going on?

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