Legal battle between Arm and Qualcomm over AI PC chips contract dispute begins

From Investing.com: 2024-12-16 16:46:10

A legal battle between Arm and Qualcomm over a contract dispute began, with Qualcomm using Nuvia’s designs for new AI PC chips, causing tensions. Arm CEO Rene Haas testified about licensing disputes and reassurance efforts to customers. Arm argued Qualcomm knew it used its technology without permission. Witnesses include Qualcomm CEO Cristiano Amon and Nuvia founder Gerard Williams.

Qualcomm and Arm have different financial terms in their licensing agreements, leading to a clash. Arm terminated the Nuvia agreement rather than transferring it to Qualcomm, insisting Qualcomm must renegotiate the terms. Qualcomm is confident in its license rights, covering custom-designed CPUs. Arm wants Qualcomm to destroy Nuvia designs, not seeking monetary damages.

Qualcomm pays roughly $300 million annually in fees to Arm, according to Bernstein analyst Stacy Rasgon. Arm, based in Britain, is owned by SoftBank Group, listed in the U.S. in 2023. The trial continues with testimonies from key figures in the tech industry.



Read more at Investing.com: Arm and Qualcomm kick off trial over AI PC chips By Reuters