The chip design firm gave a mandated 60-day notice of their cancelation to Qualcomm, Bloomberg reports. Arm claims that when Qualcomm acquired AI chip company Nuvia - which uses the Arm architecture - for $1.4 billion in 2021, it was required to seek Arm's approval to transfer licenses from Nuvia over to Qualcomm.

Any company that makes Arm chips must license technology from Arm Holdings plc, the British company that develops the instruction set. Companies can license the instruction set and create their own CPU designs or license one of Arm's ready-made Cortex CPU core designs to incorporate into their own chips.

Qualcomm is too cheap and has a massive opportunity ahead to let a license dispute derail the business plans. Learn more about QCOM stock here.

The two companies are in a legal spat over Qualcomm's acquisition of Nuvia, which uses a form of chip Arm technology.

ARM and Qualcomm find themselves in a legal tussle over a licensing issue, here's why its important for the smartphone industry.

Arm Holdings (ARM) is reportedly scrapping an architectural license deal that allows Qualcomm (QCOM) to use its intellectual property to design chips.

Arm has given Qualcomm 60 days to use its chip design standards, which could cause a huge disruption to the latter's business. Qualcomm announced its latest smartphone chip packed with AI features. The two tech companies are working on a new system that will let carmakers create their own voice-powered AI assistants.

Arm Holdings Plc is set to terminate its architectural license agreement with Qualcomm Inc, which has previously allowed Qualcomm to use Arm’s intellectual property to design its own chips, according to a report from Bloomberg News.