Arm Drops Qualcomm Lawsuit, Paving Way for Oryon's Continued Success

Arm has abandoned its attempt to terminate a key license with Qualcomm, allowing Qualcomm to continue producing its own Arm-compatible chips for PCs, phones, and servers. The lawsuit stemmed from Qualcomm's 2021 acquisition of Nuvia, which held an advanced Architecture License Agreement (ALA) and whose Oryon CPU cores power Qualcomm's Snapdragon chips. Arm argued Nuvia transferred designs without permission, but the jury largely sided with Qualcomm. This benefits Qualcomm's Snapdragon X Series and Snapdragon 8 Elite chips (for PCs and high-end phones respectively), bolstering their position in the AI market. While Arm notes other lawsuits are ongoing, its financial forecasts already account for this outcome, expecting continued royalty payments from Qualcomm. Both companies expressed confidence that the rise of smaller, powerful LLMs won't significantly impact their businesses and are committed to supporting on-device LLM execution.