AWS and Arm may be in talks over a major investment by the cloud giant in the chip technology specialist, Reuters reported on the basis of insiders. This stake should be realized before Arm’s IPO.
With AWS as a major investor, Arm wants to ensure that key customers continue to buy its technology, Reuters writes. Many chip companies use Arm technology in their own processor designs. AWS, for example, does so in its own Graviton processors.
Other companies approached as well
The chip technology specialist is also in talks with about 10 other large, related companies such as Intel, Alphabet and Nvidia. Not only is customer retention important, the investments from the various tech and chip companies should also ensure that Arm’s IPO becomes attractive to potential shareholders, is the thinking behind the move.
The potential pre IPO investors, by the way, will not be given a seat on the board of directors or given other control options.
IPO in early September
Owner Softbank plans to take Arm public in early September. The IPO should generate a value of between 7.3 billion euros ($8 billion) and 9.1 billion euros ($10 billion).