Rogue Arm China CEO says failed Nvidia buyout bid 'could be a better path for Arm'

Allen Wu in front of ARM sign.
(Image credit: ARM CHINA)

In an interview with JW Insights (thanks Tom's Hardware), embattled CEO and chair of Arm China, Allen Wu, said that the failure of Nvidia's $40 billion bid to buy Arm was a good thing for the company and the chip industry. UK-based chip maker Arm currently has plans to go public, which could be a rough road due to the public legal drama around Arm China. After an internal investigation determined that Wu failed to disclose conflicts of interest, he was voted out, but remains in charge for the time being due to a legal loophole. Arm owns 49 percent of Arm China.

Nvidia stepped away from the Arm acquisition in February because of "significant regulatory challenges," according to a press release sent by the company. Those challenges include a 2021 lawsuit filed by the US Federal Trade Commission against Nvidia, which alleged that the takeover would make the company too big and powerful and would stifle competition. The UK also investigated the deal.

"Most industry players believe that it is most beneficial for industrial development if Arm remains an independent company," said Wu about the failed acquisition. "And thus, the regulatory authorities will get tighter and tighter, particularly on large chip acquisitions, so I think large-scale M&A (mergers and acquisitions) will be more and more difficult."

Arm has accused Wu of misusing company money to finance his ongoing legal battles. He remains CEO of Arm China despite his firing by exploiting a centuries-old legal loophole  which has involved camping out in his office for over a year and controlling the company's seal.

Tips and advice

The Nvidia RTX 3070 and AMD RX 6700 XT side by side on a colourful background

(Image credit: Future)

How to buy a graphics card: tips on buying a graphics card in the barren silicon landscape that is 2022

Wu suggested that Chinese tech companies look into spinning off their businesses as joint ventures, which is how Arm China was formed, allowing it to keep all of its technical and patent licensing from Arm. 

Wu ended the interview with an optimistic tone on the Arm's future.

"I think we all have the same goal," he said. "We all hope that technology will boost development in human society. I think the process of M&A must be more difficult than it was, and the communications need to be carried out earlier and better."

As Tom's Hardware points out, the biggest hurdle for Arm to go down the IPO route is Wu himself. Around 20% of Arm China's finances can't be audited due to how Wu is running the company. This is a big red flag for regulators, especially if there is already a whiff of any financial impropriety. 

Jorge Jimenez
Hardware writer, Human Pop-Tart

Jorge is a hardware writer from the enchanted lands of New Jersey. When he's not filling the office with the smell of Pop-Tarts, he's reviewing all sorts of gaming hardware, from laptops with the latest mobile GPUs to gaming chairs with built-in back massagers. He's been covering games and tech for over ten years and has written for Dualshockers, WCCFtech, Tom's Guide, and a bunch of other places on the world wide web. 

Read more
Promotional image of a generic Snapdragon X Plus chip in a stylized circuit board
Arm pushes back against Qualcomm in court, claiming it's not out to be a chip competitor and the current licence situation is losing them $50 million in revenue
Promotional image of a generic Snapdragon X Plus chip in a stylized circuit board
Arm won't keep chasing after Qualcomm on the grounds of licensing shenanigans—but the legal jostling isn't over
 photo shows a factory tool that places lids on data center system-on-chips at an Intel fab in Chandler, Arizona, in December 2023. In February 2024, Intel Corporation launched Intel Foundry as the world’s first systems foundry for the AI era, delivering leadership in technology, resiliency and sustainability.
So, wait, now TSMC is supposedly pitching a joint venture with Nvidia, AMD and Broadcom to run Intel's ailing chip fabs?
Nvidia headquarters
Nvidia denounces Biden administration's 'rigged' and 'misguided' new AI chip export restrictions
Pat Gelsinger
Ex-Intel CEO Craig Barrett suggests the company should 'fire the board and rehire Pat Gelsinger to finish the job he has aptly handled over the past few years'
 photo shows a factory tool that places lids on data center system-on-chips at an Intel fab in Chandler, Arizona, in December 2023. In February 2024, Intel Corporation launched Intel Foundry as the world’s first systems foundry for the AI era, delivering leadership in technology, resiliency and sustainability.
'This is not unlocking shareholder value, it's a fire sale': Jim Keller weighs in on a possible 'careless' Intel chip and fab spin-off
Latest in Graphics Cards
Nvidia CEO Jensen Huang holding an RTX 50-series card.
92% of Nvidia users turn on DLSS... if they've been lucky enough to bag an RTX 50-series card at launch AND have the Nvidia App installed
A side by side comparison of two Asus Q-Release systems, with the original design on the top and the bottom showing the apparently new design.
Asus appears to have quietly changed the design of its Q-Release PCIe slot after claims of potential GPU pin damage
A Colorful RTX 5080 and its box
Three lucky folks in India can win the dubious honour of buying an RTX 5080 GPU at Nvidia MSRP
Jensen Huang, co-founder and chief executive officer of Nvidia Corp., speaks while holding the company's new GeForce RTX 50 series graphics cards and a Thor Blackwell robotics processor during the 2025 CES event in Las Vegas, Nevada, US, on Monday, Jan. 6, 2025. Huang announced a raft of new chips, software and services, aiming to stay at the forefront of artificial intelligence computing. Photographer: Bridget Bennett/Bloomberg via Getty Images
Group allegedly trying to smuggle Nvidia Blackwell chips stare down bail set at over $1 million
Nvidia RTX 5090 Founders Edition graphics card on different backgrounds
AI will be crammed in more of the graphics pipeline as Nvidia and Microsoft are bringing AI shading to a DirectX preview next month
Nvidia RTX 50-series graphics cards alongside an RTX 4090
Nvidia says it's sold twice as many RTX 50-series cards as RTX 40-series in the first 5 weeks. I'd bloody well hope so given there was essentially just the RTX 4090 for competition
Latest in News
Cognixion’s AI powered headset
New headset reads minds and uses AR, AI and machine learning to help people with locked-in-syndrome communicate with loved ones again
Nvidia CEO Jensen Huang holding an RTX 50-series card.
92% of Nvidia users turn on DLSS... if they've been lucky enough to bag an RTX 50-series card at launch AND have the Nvidia App installed
A woman with an arcane slingshot uses it to light a distant fire
Deconstructeam's next game is about training to shoot a single fireball at an impossible target
assassin's creed shadow naoe
We asked two parkour athletes to rate the realism of Assassin's Creed's acrobatics, and a surprising 'crime against parkour' might actually be one of the most realistic things they saw
Aooster's G-Flip 370 mini PC
This palm-sized PC has removably memory, a flip up screen, and a Ryzen AI 9 HX 370 processor
Mechs fight on the outside of a spaceship
MechWarrior 5: Clans is getting DLC with playable Elementals and a fight on the outside of a spaceship