Amazon Said to Be in Talks to Become Anchor Investor in Softbank-Owned Chip Firm Arm Ahead of IPO

Arm has been in talks with about 10 technology companies, including Intel, Alphabet and Nvidia, about an investment ahead of its IPO.

Amazon Said to Be in Talks to Become Anchor Investor in Softbank-Owned Chip Firm Arm Ahead of IPO

Photo Credit: Reuters

Amazon's AWS makes its own processing chip called Graviton, using Arm's design

Highlights
  • Arm plans to list on the Nasdaq in early September
  • The company is seeking to raise $8 billion to $10 billion at its IPO
  • The IPO is expected to be a much-needed boon for SoftBank
Advertisement

Amazon.com is in talks about joining other technology companies as a cornerstone investor in SoftBank Group's Arm ahead of its initial public offering (IPO), people familiar with the matter said on Tuesday.

Amazon's potential involvement in the IPO, which has not previously been reported, underscores Arm's significance in cloud computing. Amazon Web Services, the internet giant's cloud business, makes its own processing chip called Graviton, using Arm's design.

Arm plans to list on the Nasdaq in early September, according to one of the people. The company is seeking to raise $8 billion to $10 billion (roughly Rs. 66,252 crore to Rs. 82,815 crore), Reuters has reported.

Arm and Amazon declined to comment.

Arm has been in talks with about 10 technology companies, including Intel, Alphabet and Nvidia, about an investment ahead of its IPO, Reuters has reported. These investors would not gain any board seat or control, according to the sources.

Arm is hoping that bringing cornerstone investors onboard will strengthen its ties with top customers and boost the IPO's appeal, one of the sources said.

The IPO is expected to be a much-needed boon for SoftBank, which is battling to turn around its massive Vision Fund, after many of its bets on technology startups soured.

SoftBank has been targeting a listing for Arm since its deal to sell the chip designer to Nvidia for $40 billion (roughly Rs. 3,31,260 crore) collapsed last year because of objections from US and European antitrust regulators.

Since then, Arm's business has fared better than the broader chip industry thanks to its focus on data center servers and personal computers that generate higher royalty payments.

© Thomson Reuters 2023


Samsung launched the Galaxy Z Fold 5 and Galaxy Z Flip 5 alongside the Galaxy Tab S9 series and Galaxy Watch 6 series at its first Galaxy Unpacked event in South Korea. We discuss the company's new devices and more on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Arm, Amazon, SoftBank Group
Canadian Publishers Ask Antitrust Regulator to Investigate Meta’s Decision to Block News Access
Facebook Gadgets360 Twitter Share Tweet Snapchat LinkedIn Reddit Comment google-newsGoogle News

Advertisement

Follow Us
© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »