The Morning After: Arm doubles down in its Qualcomm fight
Boeing has another mishap, and Tesla promises cheaper EVs.
Isn’t it fun when a relatively minor skirmish over money boils over to threaten (checks notes) the whole Android ecosystem? That’s what’s happening now chip firm Arm has moved to cancel the architecture license allowing Qualcomm to build its chips.
Essentially, back in 2021, Qualcomm bought an AI chip company, Nuvia, which was also an Arm licensee. Qualcomm has used Nuvia’s technology inside its AI PC chips, but Arm feels Qualcomm never sought its blessing to transfer those licenses.
In response, Arm sued Qualcomm in 2022 to try to get what it was owed, with the battle due to go to trial this December. But unless someone backs down in the interim, Qualcomm might not be able to make the chips — the basis for its multi-billion dollar business.
I wouldn’t worry too much, given how high the stakes are for both companies in this situation. It’s likely someone will cut a hefty check days before the license is withdrawn, and everyone can go back to gently tolerating each other.
— Dan Cooper
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