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.

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.

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.

PCs with Intel and AMD processors also qualify as Copilot+ certified, so any failure to resolve the dispute, or defeat for Qualcomm, won’t disrupt AI capabilities from appearing in Windows laptops, but the Oryon core is also used in high-end smartphones and tablets due for release in the coming weeks.

This "architectural license" agreement has been the cornerstone of the partnership that has kept Android smartphones humming with Qualcomm's cutting-edge processors for years. Now, according to

Arm has reportedly scrapped its license with Qualcomm, which granted the company the right to design chips based on Arm technology standards.

Arm has served Qualcomm with a 60-day cancelation notice for its chip design license. Qualcomm's Snapdragon 8 Elite uses custom Oryon CPU cores, thanks to its Nuvia acquisition. Arm canceled Qualcomm's license due to the latter's Nuvia acquisition without its consent and new licensing agreements.

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.