No, that didn't deter Nvidia, it's mainly with EU, UK and American regulatory pressures (which might formally stop the acquisition). Additionally, some civil servants within the UK government have said that the ministers are considering to declare Arm as a critical company (and considering the "partygate" has made the Johnson government more populist, it's becoming more likely that pro-Britain moves will be made, at least as perceived by voters).
Yes, this was the insanity, they waved through selling it to Softbank, but then cottoned on to how important it was once they realised it was going to be acquired by Nvidia. They shouldn't have let it sell in the first place, but atleast they're fixing that now, and if they can guide it towards an IPO that would be a very good result.
