When Qualcomm beat Google to acquire chip startup led by an ex-Apple employee – Times of India

Last year, Qualcomm acquired Nuvia, a startup led by ex-Apple and Google employees Gerald Williams, Manu Gulati, and John Bruno, respectively. Incidentally, Qualcomm was not the only company eyeing the chip startup founded by these former top execs of Apple and Google. Reports suggest that Google, too, wanted to acquire the company primarily for its talent. However, Qualcomm emerged as the winner with its $1.4 billion offer.
The Information reports that Nuvia made news when Apple sued the company for poaching its ‘chip talent.’ In fact, as per the report, it was then that the chip startup “eventually became a takeover target” for Google, Microsoft, Intel, and Qualcomm.
Apple sued Nuvia for poaching employees
Founded by ex-Apple and Google employees, Nuvia was building the world’s leading server processor. But, a lawsuit from the Cupertino giant soon followed, alleging that the startup had poached its chip staff, suing its former executive, who led the development of the M1 chip.
The report says that the lawsuit did enough publicity for Nuvia to be considered a credible semiconductor startup, as per people familiar with the company. And also put it under the radar of Google, Qualcomm, and others.
Google may have wanted Nuvia for Tensor
With Google working on its in-house custom chip, the company likely wanted to buy the startup to bolster its efforts, which would have resulted in an in-house team working on Tensor rather than relying on Samsung for the designs.
Nuvia becomes Oryon
However, we know how it all ended. Qualcomm purchased Nuvia, got a half-baked chipset, diluted the company within itself, and continued the development, ultimately making an ARM chipset for PCs dubbed Oryon rather than one for servers.
The acquisition faced a lawsuit from ARM, alleging that the company breached its licence agreement and wanted to use Nuvia’s existing licence for custom chips, which could not be transferred under the acquisition. However, Qualcomm said that the company already has a licence that permits it to build its custom chip.