Amazon is reportedly in discussions to become a significant investor alongside other technology firms in SoftBank’s Arm prior to its upcoming initial public offering (IPO), sources familiar with the matter have revealed.
The potential involvement of Amazon in Arm’s IPO, a detail not previously disclosed, highlights the pivotal role of Arm in the realm of cloud computing. Amazon Web Services, the tech giant’s cloud division, has developed its own processing chip, named Graviton, utilizing Arm’s design.
Arm is preparing for its Nasdaq listing in early September, aiming to raise between US$8 billion and US$10 billion ($12.3 billion to $15.3 billion), as previously reported by Reuters.
While both Arm and Amazon have declined to comment, sources indicate that Arm has engaged in discussions with approximately 10 technology companies, including Intel, Alphabet, and Nvidia, regarding potential investments preceding the IPO. It has been emphasized that these investors would not secure board seats or exert control over Arm.
The strategic inclusion of cornerstone investors is seen as a move to solidify connections with major clients and enhance the appeal of the IPO, according to insiders.
For SoftBank, the IPO holds significant promise as it endeavors to rejuvenate its expansive Vision Fund, which encountered challenges after numerous bets on technology startups did not yield the anticipated results.
SoftBank’s ambitions for an Arm listing were revived after its $40 billion deal to sell the chip designer to Nvidia was thwarted last year due to objections from US and European antitrust regulators. In the interim, Arm has demonstrated resilience in contrast to the broader chip industry, largely attributed to its focus on data center servers and high-royalty generating personal computers.
