Porsche invests in German startup aiming to be a one-stop shop for carbon neutral homes

Porsche’s venture arm has taken a minority stake in 1Komma5, a five-month-old German startup aiming to offer households everything needed for a carbon neutral home, including energy storage, charging infrastructure for electric vehicles and solar.

The investment, the amount of which was not disclosed, follows a series of deals made by Porsche Ventures in the past two years, including Israel-based sensing technology startup TriEye, online electric micromobility dealership RidePanda and virtual sensing startup Tactile Mobility.

This investment is a bit of a departure from Porsche Ventures’ typical mobility tech play.

“With this investment, we want to underline our ambition in the area of smart city and sustainability,” Patrick Huke, head of Porsche Ventures Europe and Israel told TechCrunch.

The Hamburg, Germany startup was founded by Micha Grueber, who is the CFO, and Philipp Schröder, whose previous stints were at Tesla and energy storage systems company Sonnen.

The company — its name a nod to the goals of the Paris Climate Agreement to keep the increase of global temperatures down to 1.5°C — is taking an interesting route to its one-stop shop goal.

Today, companies are all focused on selling the components such as solar or energy storage, Schröder said in a recent interview. At the same time, no one in Europe is focused on bringing together these decentralized assets. That is bound to cause problems, Schröder contends.

“There will be issues in a decentralized energy world if every home is having a heat pump and a charge point and storage system and they do not communicate on the grid level (or with each other) there will be issues,” he said.

1Komma5 is aiming to bring everything together through its software as well as acquisitions. Specifically, 1Komma is seeking to buy leading electrical installation companies in Germany — and will eventually expand to other countries such as Austria and Switzerland — that focus on renewable energies such as solar, heat pumps and energy storage. 1Komma5 provides the enterprise software for these companies to handle administrative tasks and customer-relationship management as well as energy management software that ties the charging, solar and energy storage together.

What makes 1Komma5’s business interesting is its plan to interconnect these components like solar and energy storage at home level and at the grid level, Schröder said.

The startup has made five acquisitions so far through cash and stock deals.

The young startup has grand ambitions to use 100 million euro in cash and stock over the next to two years to acquire more of these renewable energy-focused installation companies. It’s targeting  installation companies that have revenue between 5 million and 20 million euro and skilled labor — not sales outfits that simply outsource to other contractors.

The funding from Porsche will be used to to help 1Komma5 expand, a plan that includes opening retail locations that embody a premium Apple design-like vibe where potential customers can learn about the essential building blocks of a carbon-neutral home. Customers to these stores might see a Porsche Taycan next to a home charger, energy storage and solar, for instance.

The first showrooms are planned at Hamburg’s Binnenalster and in Lingen an der Ems and are expected to open in the first quarter of 2022.

Porsche doesn’t have any immediate plans to offer 1Komma5 products to its own customer base. However, as Huke noted, Porsche Ventures makes strategic investments and it will be looking at different possibilities in the medium to long term.

Apple debuts 'From Apple Music With Love' featuring exclusive gifts for subscribers


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Apple Music kicks off this holiday season with brand new, exclusive content to help subscribers ring in the new year.

Each day over the next week, Apple Music will feature a bit of exclusive content from A-list musicians, including Mariah Carey, Coldplay, Alecia Keys, Elton John, DJ Khaled, Nile Rodgers, and more.

Subscribers can expect to see exclusive EPs, playlists, remixes, a special radio show, and, according to Apple, “a few treats so exciting that we don’t even want to tease you with them.”

In the description, Apple notes that the EP was recorded entirely in Spatial Audio with Dolby Atmos. It includes highlights from the band’s ninth album “Music of the Spheres,” as well as a rendition of their 2010 single “Christmas Lights.”

China’s ride-hailing giant is delisting from New York

China’s ride-hailing behemoth Didi has begun the procedure of delisting from the New York Stock Exchange and applying to list in Hong Kong instead, the company announced via a Weibo post on Friday morning.

The decision came days after Bloomberg reported the Chinese government had asked Didi to delist from the U.S. out of security fears. Didi could not be reached for comment by TechCrunch at the time.

The move is anything but surprising. The SoftBank-backed mobility powerhouse has faced immense regulatory pressure since it failed to assure Beijing its data practices were secure before its blockbuster IPO in July.

Over the past few months, China has rolled out a litany of new data regulations, including rules that would bolster user privacy protection and restrict cross-border data transfers. A Didi executive previously said it stored data in China and it was “absolutely not possible” that it passed data to the U.S., just like “many other U.S.-listed Chinese firms.”

More to come…

Our new hybrid lives: Tactile virtual experiences and hardware that lives with us

With hybrid models taking off across many aspects of society, it’s clear that though they offer incredible flexibility, the boundary lines between work and personal life are becoming increasingly blurred and emotionally draining.

Ritual has always been a powerful force in shaping our mental and emotional states; the gathering of people, physical totems, wardrobe and space design all work to choreograph that experience. But for people in the hybrid workforce, many of the rituals to which they’ve become accustomed are no longer accessible—their daily work experience involves no gathering, no change in location, and little (if any) wardrobe change.

We are doubling down on hybrid virtual experiences, even though studies reveal that young people who spend more than seven hours a day staring at a screen are more susceptible to depression, anxiety and have greater difficulty in completing tasks. Furthermore, employees are reporting fatigue and exhaustion from a sea of back-to-back meetings that stretch across multiple time zones, making the days feel endless.

Given that so much of the population is currently reliant on computing devices to engage in everything from work and school to shopping, banking and healthcare, we have to start taking a harder look at how we’re designing and developing those devices to better equip us for new rituals for the hybrid virtual world.

Today, computing devices account for every possible scenario, from the traditional desktop workstation to the ultra-portable handheld mobile phone. But what if the design of these objects could help users enforce the boundaries between work and personal life?

For instance, a device with a keyboard in front of a screen conveys “productivity tool,” while a touch tablet experience feels more casual and entertainment-focused. What if remote workers could have the option to switch between these two modalities to signal a switch from “work” to “personal”?

Another area that has exploded into the tech spotlight is video chat and conferencing tools. For many of us, the majority of our interactions are now playing out via virtual meetings on video conferencing apps. HD webcams and ring lights have been in high demand, and the number of virtual backgrounds and effects multiply daily.

But there are still many challenges and limitations to the video conference experience, partly because it’s so dependent on the hardware design. Tools like Zoom, Google Hangouts and Teams have all been racing to keep up with the latest upgrades, but the software can only go so far without tackling hardware hurdles like integrated lighting sources, improved audio or even tactile feedback.

However, if we start to accept these paradigm shifts of in-person to virtual, we can begin to design for the future normal with hardware upgrades like a camera lens no larger than a pixel that disappears into the screen to make it appear as if users are making direct eye contact with their colleagues. Other areas, such as the application of temperature and tactile technologies, can help us feel deeper connections with one another via virtual spaces. There may also be new possibilities in exploring olfactory technologies as immersive experiences continue to evolve.

But what does this hardware evolution actually look like when it comes to production and consumption? While the expediency and convenience of technology is certainly impressive, it comes at a cost to our planet.

Have consumers become Earth’s abusers?

When I think about my most cherished possessions, what they have in common is that they are old and rare. Of course, this is typical of valuable items, but why couldn’t we bring this value system to our tech products? While I swap out my iPhone every year or two, I take tremendous joy in upgrading parts on my Ducati motorcycle bit by bit. I would never think of tossing it out for a brand new one.

As consumer demand for sustainable solutions increase, hardware companies must adjust their offerings. Powerful brands like Apple could be a great leader in strong regenerative practices. Building your own desktop PC is nothing new (especially for hardcore gamers) but imagine a future where all portable tech is modular with swappable upgrades. What if 50 years from now, your smartphone from 2025 is a still functional and highly valued piece of vintage tech?

The reality of our new normal is that the plethora of devices is not going away, while software developments are continuing to make leaps and bounds. It’s time we started thinking about our devices as objects to keep and care for, repairing and refurbishing things like phones and computers to keep up with the latest advancements, much like we do with our cars or even our homes.

Judging by the future, not the past, Stride takes steps to turn student finance upside down

If you’re trying to get a mortgage or an auto loan, banks will put on their judging glasses and look into your past. Makes sense; it’s a reasonably reliable indicator as to whether you’ll be able to repay your loans or not. Student financing is a little different. Sure, your past plays a role, but for a lot of education, having a degree dramatically changes your earning potential, and hence your ability to repay. With a philosophy that the current student loan systems perpetuate the rich-get-richer systems, Stride Funding is taking a different approach and just raised $12 million to help it take the business a few more steps into the future.

The issue at the heart of the company is one of equality and access to education — one of the most significant indicators as to whether someone will have an opportunity for financial upward mobility. As you might expect, there are layers of privilege (can your parents help pay for your loans) and — more specifically — institutionalized racism in the picture. It is with quixotic optimism that Stride Funding is taking on the $130 billion student loan industry, which currently has $1.6 trillion worth of loans outstanding.

Since closing its seed round in 2019, Stride increased the capital committed to students to over $50 million, with capital providers such as Silicon Valley Bank seeking to finance hundreds of millions of additional funds.The main thrust behind the company is to make education more available, especially to populations that have traditionally struggled to secure financing.

“Especially in student lending, there’s this massive gap in terms of access to capital,” says Tess Michaels, CEO and founder at Stride Capital. “Ninety-two percent of private loans require co-signers, and less than a fourth of students actually have access.”

The company today announced it closed a $12 million Series A financing, led by Firework Ventures (co-founded by Brigette Lau and Ashley Bittner). Other investors include impact investors such as Juvo Ventures and Graham Holdings — alongside previous investors GSV Ventures, Slow Ventures and Sinai Ventures. The Stride Funding team has a personal mission at the core of its business:

“Both my parents immigrated here to the States, and education was their pathway to economic mobility. Education is what opens doors. And unfortunately for a lot of historical reasons, I think a lot of folks, especially underrepresented populations, are just left out of the market,” says Michaels, highlighting how this difference further amplifies the gap between the haves and the have-nots. “I feel very tied to the mission. We have supported such a wide range of really, really amazing, inspiring students, from refugees to DACA students, women, underrepresented minorities, and so on. We get such encouraging stories all the time from students, and it just reinforces that this is something that is worth doing.”

Oura Ring 3 review

I admit I was thinking about the Oura Ring incorrectly. I was thinking of the device as an alternative to my Apple Watch. I suppose this is true, in the vaguest sense — likely for most people, it’s one or the other. After all, two activity trackers is overkill for most. It’s also cost-prohibitive. At $299, we’re well within smartwatch territory on the pricing front.

There’s also the fact that, starting with the Ring 3, Oura is adding a $6/month subscription fee that kicks in after a six-month grace period. The new service arrives with additional features, but also sticks behind a paywall metrics that were previously free to users. The Oura Ring 3 is, in a word, an investment. But it isn’t a smartwatch.

If anything, it’s a successor to the fitness band — a category we don’t think about much these days, but one that utterly dominated the wearable category before Apple sunk its teeth into the space. Companies like Fitbit and Xiaomi still sell a ton of the things on an annual basis, but they’ve largely fallen out of fashion in favor of their more fully featured brethren. The more I’ve begun to think about the Oura Ring as a fitness band (or, perhaps more appropriately, health band), the more it has begun to make sense.

Image Credits: Brian Heater

It is, in a sense, a passive device — not one that buzzes and beeps, constantly demanding attention throughout the day. The Oura Ring is a device to be worn and largely ignored, save for the occasional predetermined nudge for things like movement reminders. And if we’re being honest, that’s always going to be the case here. Sure, many fitness bands have blurred the line with displays, but the ring form factor has some very real limitations with regard to real estate.

Rather, the Ring is designed to stay out of the way, collecting actionable sleep, health and fitness data that you can peruse later on a connected mobile app. And really, that’s long been the selling point here. For the most part, a ring is better at staying out of your way than a fitness band. That was the appeal of Motiv’s initial play — and while that product seemingly moved away from the fitness category, it’s a banner than Oura has been more than happy to pick up and run with.

Image Credits: Brian Heater

Before we venture any further, a confession: I’m not a ring guy. I don’t particularly like rings and don’t wear them (cue: “Don’t Fence Me In”). This is one of the big reasons I’m not going to be a regular Oura user. I’ve also, honestly, become fairly attached to my smartwatch. That said, I’ve been wearing the Ring 3 for the prescribed two weeks. That was Oura’s recommendation/soft demand for reviewing the product.

It was a strange request, as far as these things go. When reviewing hardware, you generally like to spend as much time with the product as possible. Easier said than done, sometimes. But here, the company insists that a fortnight is required for setting a kind of baseline measurement. It’s not that readings are going to be bad for the first two weeks, so much as things will be better when you’ve been wearing the device for a bit and Oura has a clearer idea of your habits, sleep and biometrics.

And it’s understandable, given that we’re all different, and customization is a key to any sort of health device. My guess is that sort of buy-in won’t be difficult to engender among those willing to plunk down $299 for a ring. It’s also a relatively simple lift given that it’s a minimally invasive product. Again, as someone who isn’t a ring person, it took some getting used to, but as a bit of a restless sleeper myself, it’s easier to wear to bed than a big, bulky smartwatch. Let’s take a moment to appreciate the built-in irony of a sleep-tracking device that’s hard to wear to bed. The Oura Ring is not that.

It’s comfortable. Because it’s a ring. Again, I’m not a ring guy, but the simple fact of it occupying less real estate makes it less invasive. Design-wise, the product is virtually identical to its predecessor. It’s a single-color metal band, round, but for a flatish edge that denotes the top of the product.

Image Credits: Brian Heater

If you don’t know your ring size, the company will send a sizing kit à la Warby Parker, featuring a number of plastic dummy rings. You’re encouraged to wear one around for 24 hours, as the human finger has a way of swelling and contracting during the day. I chose my size and color (a matte black) and waited. Ultimately, I found the final product to be a bit looser than its plastic counterpart, but the ring stayed on fine. And, indeed, I found that the exact fit tended to evolve over the day.

On the face of it, the device looks like a standard ring — and that’s really the appeal. You will, however, sometimes see a green glow emanating from the inner circle, as the ring’s sensors grab a heart rate reading. Daytime heart rate monitoring is among a handful of new features available at launch, along with period production (something I admit that I did not have an opportunity to test) and improved temperature sensing. Based solely on those new features, the 3 represents an incremental update over the 2.

The list of upcoming features arriving this year and next is a significantly longer one, including additional content like meditation and breathing sessions, workout heart rate monitoring, more accurate sleep staging and SpO2 blood oxygen sensing. In the case of that last one, in particular, it’s not entirely surprising it was delayed — and Oura’s certainly not alone in turning on a key health sensing feature after launch. In this case, it’s not about FDA approval (not yet, at least), but rather implementation.

This stuff is tricky to get right, and that likely goes double when you’re not Samsung or Apple. It is, however, a long list of promised features that will likely leave many potential consumers wondering why the company didn’t wait to launch a more fully realized product. I do ultimately wonder if it’s a piece of a deeper strategy to offer a base of hardware with the promise that features will continue to improve and roll out over the course of its life.

After all, there’s no question that Oura has some long-term ambitions with this stuff. Look no further than the myriad studies in which the company has participated. A cursory glance at its blog shows everything from depression to the impact of phone usage on sleep to adapting to undersea environments. Not everything is going to prove out, and certainly most or many would lead to brand new features, but at the very least, there’s some interesting insight here into precisely how much we’ll ultimately be able to monitor or predict with sensors. Among other things, those studies do appear to have proven out the accuracy of measuring things like heart rate on a finger versus the wrist.

Ultimately, I prefer a wrist-worn tracker like the Apple Watch for its workout tracking. I was able to pair the two and use them to paint an overall picture of my activity. I recognize not everyone has the means — or desire — to do this, however. Where the Oura Ring ultimately succeeds versus more traditional trackers is its emphasis on actionable insights — that’s precisely why the company is so insistent people let it determine a baseline before judging its efficacy.

Image Credits: Brian Heater

Things like recovery and readiness tend to be overlooked by these sorts of devices. Oura describes the latter thusly:

Readiness is your main Oura score and is designed for you and only you, helping you discover what works for your body and lifestyle. Readiness is a holistic picture of your health — taking into account your recent activity, sleep patterns, and direct body signals (like resting heart rate, heart rate variability, and body temperature) that can signify if your body is under strain.

Effectively, it takes all of the metrics it has been collecting and determines whether you’re doing a good enough job recovering between them. Recovery Time was a constant red flag for me. Which, fair enough. I could and probably should be doing a better job letting my body recover between workouts. It’s certainly something to improve on, as the red “Pay attention” notifications plainly indicate.

Image Credits: Brian Heater

Another place that pops up is sleep. Clicking over to the Home tab, the app notes, “Your heart rate decreased late last night, so you might not by fully recovered. To help your body recharge, how about taking a moment to unwind today?” It seems obvious on the face of it that, say, meditating at night (versus the morning when I usually do) or practicing breathing exercises before bed, would be better for my (admittedly restless) sleep than, say, doom scrolling with my buds on Twitter.

But in amongst the daily grind, it’s easy to lose sight of this fact. I’ve always said that one of the underrated and under discussed benefits of a wearable is that it’s kind of the tech equivalent of tying a string around your finger. It’s an injection of mindfulness and a reminder of why you made that investment in the first place. We buy these things because we want to better ourselves. And in a world where technology too often does the opposite, some positive technological reinforcement is a net positive.

Apple's 'CODA' nominated for nine Hollywood Critics Association Film awards


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Apple TV+ original film “CODA” has received nine Hollywood Critics Association Film Award nominations, including Best Picture and Best Indie Film.

CODA” follows Ruby, a young girl who is a child of deaf parents and who acts as an interpreter for them as she is the only hearing member of her family. When Ruby discovers a talent for singing and wants to apply to the Berklee School of Music, it causes friction in her family, which depends on her for their fishing business.

“CODA” received nine total nominations, including:

  • Best Picture
  • Best Director – Sian Heder
  • Best Actress – Emilia Jones
  • Best Supporting Actress – Marlee Matlin
  • Best Supporting Actor – Troy Kotsur
  • Best Cast Ensemble
  • Best Adapted Screenplay – Sian Heder
  • Best Indie Film
  • Best Original Song – “Beyond the Shore”

The ceremony will take place on January 8, 2022, at the Avalon in Hollywood, California.

The film recently won two Gotham awards. Star Emilia Jones won the Breakthrough Performer award, while Troy Kotsur took the Outstanding Supporting Performance trophy.

“CODA” was the first film to feature burned-in captions — that is, captions that were burned into the print itself, eliminating the need for special equipment usually required for deaf and hard of hearing users to watch films in theater.

Daily Crunch: After a transitional year, Apple announces its 2021 App Store Award winners

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Hello and welcome to Daily Crunch for December 2, 2021! There’s a lot going on. More fintech in Latin America. Actuator launching. App Store Awards. The week’s software selloff. It’s a lot, so buckle in. Maybe the news slowdown will come next week? Here’s hoping! – Alex

The TechCrunch Top 3

  • Better.com shows how not to fire people: Here’s a small tip: If you announce that you have raised or otherwise managed to access hundreds of millions of dollars, don’t fire a bunch of your team right afterward. Not only is it bad PR — and it definitely is — it’s also just an awful thing to do. Anyways, Better.com got access to half its SPAC money early and then laid off 9% of its staff.
  • Grab goes public, quickly sheds value: The Grab SPAC was supposed to be a crowning moment of sorts for the company. And then, despite raising oodles of capital and avoiding the poison of shareholder redemptions, shares of Grab still ate it hard today. Despite stocks rising in the United States, the Nasdaq-listed Grab shed around 20% of its value, at least as I write this to you. Ouch.
  • Guess who won App Store Awards: No really, guess. I would not have anticipated that a mobile League of Legends game would win the iPhone gaming prize. It feels a bit anachronistic that Apple picks favorites each year, a bit like the Grammys, if the Grammys also owned the music marketplace. Perhaps we should do some sort of Best of TechCrunch collection and see if Apple News picks it up.

Startups/VC

  • Timnit Gebru gets the last laugh: Following her high-profile exit from Google, former Alphabet AI ethicist Gebru “has set up shop herself with a brand new research institute, DAIR, focused on the topics she felt were being sidelined at Google,” TechCrunch reports. The best revenge is living well, they say. That or founding your own company to do the damn work.
  • IRL buys AaBeZe Labs: This story makes me happy. Because there was a time when app names made no sense. And then startups started to have names like Vertical SaaS 4 Ur Industry, and it all got a bit corporate. IRL is a social app, while AaBeZe does “digital nutrition.” Hell yeah, tech being weird. I will now go take 17 virtual supplements to avoid getting a virus.
  • Say it with me: ~ community ~ Community became a buzzword in the startup space after it got super expensive to buy an audience from social networks. So, build your own community, and it makes acquiring customers cheaper! Viola! There’s more to it than that, but that’s a bit of context regarding what Playground is up to. Per TechCrunch reporting, “Playground is a social platform that seeks to help people discover and develop community while empowering creators to monetize their audience.” (Don’t forget that if you say “monetize community” three times in the mirror, you only get coal in your stocking.)
  • Two stories from Mexico: Mendel has raised $35 million to work on the corporate spend issue that has proven so lucrative in the United States. And Kueski just added a bajillion dollars to its accounts to help it grow its Mexico-focused BNPL solution.
  • Glorify raises venture capital money: Nothing says “Christianity” like raising venture capital to fund an app that sells folks religious material. And while we’re just muttering Matthew 19:24 to ourselves, we should note that a16z just backed Glorify to the tune of $40 million. We presume $4 million will get tithed.
  • How much does it cost to deliver groceries? Trick question. The answer is infinite capital. Evidence? JOKR just raised again, and Swiggy is going to drop $700 million on its own “instant” grocery delivery effort.

4 analysts break down Bret Taylor’s pretty sweet week

Dreamforce 2018, Salesforce.com's user and developer conference, is held at the Moscone Convention Center and various hotels in San Francisco from September 24-28, 2018. (© Photo by Jakub Mosur Photography)

Image Credits: Salesforce

Bret Taylor is on a roll: On Monday, he became the chair of Twitter’s board, and a day later, Salesforce made him its co-CEO and co-chair.

Enterprise reporter Ron Miller looked back at Taylor’s career to better understand how a one-time Google product manager ended up co-leading one of the world’s most valuable companies. To get a fuller perspective, he interviewed four analysts:

  • Liz Herbert, VP and principal analyst, Forrester Research
  • Holger Mueller, analyst, Constellation Research
  • Brent Leary, founder and principal analyst, CRM Essentials
  • Jason Wong, analyst, Gartner

(TechCrunch+ is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

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FTC sues to block Nvidia's $40B acquisition of Arm


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The Federal Trade Commission has sued to block Nvidia’s $40 billion acquisition of chip design company Arm, claiming that the deal could stifle innovation and harm competition in the chip market.

According to the FTC, the proposed deal would “give one of the larges chip companies control over the computing technology and designs that rival firms rely on to develop their own competing chips.” The FTC’s complaint alleges that, if the deal went through, the new firm would have both the means and incentive to stifle innovation.

“Tomorrow’s technologies depend on preserving today’s competitive, cutting-edge chip markets,” said Holly Vedova, director of the FTC’s Bureau of Competition. “This proposed deal would distort Arm’s incentives in chip markets and allow the combined firm to unfairly undermine Nvidia’s rivals. The FTC’s lawsuit should send a strong signal that we will act aggressively to protect our critical infrastructure markets from illegal vertical mergers that have far-reaching and damaging effects on future innovations.”

News of Nvidia’s proposed acquisition of Arm broke in September 2020. In addition to the FTC, other chipmakers — including Qualcomm — have voiced opposition to the deal.

Arm, which is currently owned by Japanese firm Softbank, doesn’t make or market its own chips. Instead, it licenses microprocessor designs and architectures to other companies. Apple Silicon chips like the M1 or those used in iPhones, for example, are based on Arm designs.

In addition to the possibility of Nvidia stifling innovation, the FTC’s lawsuit also claims that the acquisition could harm competition by giving the chipmaker access to the sensitive information shared with Arm by Nvidia’s rivals.

Along with the FTC, the U.K. government has also probed the acquisition, stating that it could threaten the country’s national security. Regulators in the U.K. signaled in August that they believe the deal could be anticompetitive.

FTC sues to block NVIDIA’s purchase of ARM

NVIDIA’s plan to acquire ARM just hit a major stumbling block. The Federal Trade Commission has sued to block the merger over concerns the $40 billion deal would “stifle” competition for multiple technologies, including datacenters and car computers. ARM is a “critical input” that fosters competition between NVIDIA and rivals, the FTC said, and a merger would give NVIDIA a way to “undermine” those challengers.

The FTC was also worried NVIDIA would have access to sensitive info from ARM licensees. The merger could reduce the incentive for ARM to develop tech that might run counter to NVIDIA’s business goals, officials added. The administrative trial is due to start August 9th, 2022.

The company didn’t appear bothered. NVIDIA characterized the lawsuit as the “next step” in the FTC process, and repeated its arguments in favor of the buyout. The acquisition would “accelerate” ARM’s product plans, foster more competition and still protect the chip architecture designer’s open licensing model, according to NVIDIA. You can read the full statement below.

Despite the claims, an FTC lawsuit is a huge issue for NVIDIA. The Commission files lawsuits like these when it believes a company is breaking the law — concessions might not be enough. It also comes after the European Commission launched an investigation into the purchase in October. NVIDIA is facing questions from major regulators clearly wary of the acquisition, and those agencies might not accept the answers.

As it stands, NVIDIA’s competition likely isn’t happy. Qualcomm reportedly objected to the ARM deal in communications with the FTC (among other bodies) over fears NVIDIA might refuse to license designs. And when heavyweights like Apple, MediaTek and Samsung also depend on ARM, it’s doubtful the rest of the market would be enthusiastic. At the least, the trial would likely delay closure of the union past NVIDIA’s original 2022 target.

As we move into this next step in the FTC process, we will continue to work to demonstrate that this transaction will benefit the industry and promote competition. NVIDIA will invest in Arm’s R&D, accelerate its roadmaps, and expand its offerings in ways that boost competition, create more opportunities for all Arm licensees and expand the Arm ecosystem. NVIDIA is committed to preserving Arm’s open licensing model and ensuring that its IP is available to all interested licensees, current and future.

Editor’s note: This article originally appeared on Engadget.