Amazon is reportedly in discussions to become a prominent investor in Arm, a leading chip designer, before its upcoming initial public offering (IPO), according to individuals familiar with the matter.
This potential deal holds immense significance as it could greatly benefit both Arm and its current owner, SoftBank. Arm is already a pivotal player in the technology realm, and Amazon’s involvement could further elevate its stature.
As one of the globe’s largest tech corporations, Amazon holds a substantial influence. It’s a significant user of Arm chips, particularly in its Amazon Web Services division, where Arm chips are integrated into Graviton processors.
In the context of an IPO, an anchor investor plays a crucial role. Such institutional investors commit to procuring a noteworthy share of the IPO before it goes public. These investors usually maintain a close relationship with the company and are willing to invest even if the market response is tepid.
Anticipation surrounds Arm’s forthcoming IPO, poised to be a highlight among technology IPOs this year. Valued at approximately $30 billion, Arm aims to secure $8 billion to $10 billion through this public offering.
