Jen-Hsun Huang, president and chief executive officer of Nvidia Corp., speaks at the Mobile World Congress Americas in Los Angeles on October 21, 2019.
Alan Priestley, an analyst withGartner, said that the acquisition of Arm is looking more and more unlikely to go through.
The deal is facing a number of regulatory probes around the world.
It is highly unlikely that it will go through, according to Priestley. CNBC requested comment from Arm and Nvidia, but they did not respond.
The deal was supposed to be completed by March 2022, but the CEO of the company admitted in August that it would probably go past that date.
In 1990 Arm was spun out of a computing company. The company designs chips that are used in 95 percent of the world's smartphones and 95 percent of the chips designed in China. The company was bought by SoftBank in 2016 for $32 billion and licenses its chip designs to more than 500 companies.
Critics are concerned that the merger with Nvidia could restrict access to Arm's neutral designs and lead to higher prices, less choice and reduced innovation in the industry. The deal will lead to more innovation and Arm will benefit from increased investment according to the company.
Many others are against the deal, despite the fact that the U.S. chip giant has come out in support of it.
According to the report, Microsoft and Google have also raised concerns with regulators.
The U.K. government wants a full-blown investigation into the takeover of Arm, which is based in Cambridge and is seen as the jewel in the crown of the British tech sector.
Nadine Dorries ordered a probe into the deal. The antitrust concerns and national security issues will be investigated by the Competition and Markets Authority.
The Federal Trade Commission has concerns about the deal. On the fourth-quarter earnings call, the company said it is in talks with the agency to address concerns.
The European Commission launched an in-depth investigation into the deal in October.
Margrethe Vestager, the European Commission's executive vice president, said in a statement that Arm's intellectual property is an important input in products competing with those of Nvidia. The acquisition of Arm by Nvidia could lead to restricted or degraded access to Arm's intellectual property, with distortive effects in many markets where chips are used.
The Global Times newspaper in China urged regulators to be careful with the deal.
Since the deal was first announced, people have been wondering if it would be allowed by the regulators.
Ian and Nathan were the first to predict that it would be blocked.
Hogarth, who sold his start-up Songkick to Warner Music Group before becoming an angel investor, told CNBC at the time that he wouldn't be surprised if it was blocked.
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If the Nvidia deal falls through, SoftBank will likely try and list Arm on the stock market, according to a CNBC interview with a researcher.
He said that they will probably try and IPO it.
He wasn't sure how well Arm would fare on its own, but he said that the London Stock Exchange and New York's Nasdaq stock market were two potential listing destinations.
The issue SoftBank faced was how it drives its revenue. It is hard to squeeze in an intellectual property license.
