Friday, September 22

Exclusive-Amazon sources reveal that they are in discussions to secure an investor in Arm ahead of its IPO.

Sources reveal that Amazon is in talks to become the primary investor for Arm’s IPO, with their logo seen at the company’S logistics center in Lauwin-Planque.

By Echo Wang and Anirban Sen.

On Tuesday, sources close to Amazon revealed that the company is in talks about combining its investment in SoftBank Group Corp’s Arm Ltd with other technology companies for its first-ever public offering (IPO).

The fact that Arm’s design is used by Amazon Web Services, the cloud business’ manufacturing arm, highlights its position in the field of cloud computing.

One source has stated that Arm will be listed on the Nasdaq in early September. Reuters reports that the company is seeking to raise between $8 billion and $10 billion.

Arm and Amazon opted not to respond.

Reuters has reported that Arm has been in talks with roughly 10 technology firms, including Intel, Alphabet, and Nvidia, about an investment before its IPO. These investors would not be granted any board seats or control of the company, according to sources.

According to an insider, Arm is optimistic that enlisting cornerstone investors will enhance its relationship with major clients and increase the company’s appeal for the IPO.

The IPO is likely to be advantageous for SoftBank, which is struggling to recover from the decline in its Vision Fund, as many of its technology startup investments have soured.

SoftBank has been pursuing a listing for Arm since the company’s proposed sale of the chip designer to Nvidia for $40 billion fell apart last year due to protests from U.S. and European antitrust regulators.

Arm’s business has a better position than the larger chip industry due to its emphasis on data center servers and personal computers, which generate more revenue through royalty payments.

Echo Wang and Anirban Sen provided reporting, while Jeffrey Dastin and Stephen Nellis provided additional reporting in San Francisco. Matthew Lewis edited the piece.

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