Benzinga | Aug 29, 2021 04:27PM EDT

Why Tesla's Elon Musk Is Reportedly Opposing Nvidia's Proposed Arm Buy

Nvidia Corporation (NASDAQ:NVDA)'s deal to acquire U.K. chipmaker Arm Holdings hasn't been consummated yet even after nearly a year has elapsed since it was announced.

What Happened: South Korean electronics giant Samsung and U.S. ecommerce giant Amazon, Inc. (NASDAQ:AMZN) as well as EV giant Tesla, Inc. (NASDAQ:TSLA) are among a bevy of corporations that have voiced their opinions against the Nvidia-Arm deal, the U.K. Telegraph reported.

The deal is under anti-trust review in the U.S., and it has recently emerged that U.K.'s Competition and Markets Authority has raised serious concerns and has sought an in-depth investigations into the proposed combination.

Related Link: Why Nvidia Stock Analysts Are Bullish After Q2 Earnings

Why It Matters For Tesla: Before Tesla began using in-house chips for its autonomous driving technology, it sourced its supply from Nvidia. The company began rolling out its own chips in 2019, with Musk touting the silicon as the "best chip in the world..by a huge margin."

Tesla's self-driving chip uses ARM processors. The in-house FSD chip announced in 2019 was a fill system-on-chip manufactured using Samsung's 14-nm process with 12 64-bit ARM cores organized as three clusters of quad-core Cortex-A72 cores operating at 2.2 GHz. Last year, reports suggested Tesla was working on HW4.0 self-driving chip using Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)'s 7nm process.

Earlier this year, reports suggested Tesla is partnering with Samsung on a 5nm chip for self-driving.

With Tesla's self-driving chips now heavily reliant on the ARM architecture, it is no surprise that the EV giant is positioning itself in the opposition camp to the Nvidia's Arm deal.

Nvidia shares closed Friday's session 2.57% higher at $226.36.

Related Link: How Is Nvidia Trying To Win The Arm Deal?