By John Ikani
Chip designer Arm is in talks with Nvidia to bring the company in as an anchor investor for its upcoming IPO.
Arm is reportedly seeking a valuation of $80 billion for the IPO, but Nvidia is only willing to invest in a minority stake worth between $35 billion and $40 billion.
This is not the first time that Nvidia has expressed interest in Arm.
In 2021, Nvidia attempted to acquire Arm for $66 billion, but the deal was blocked by regulators on antitrust grounds.
This time, Nvidia is proposing a smaller investment that is less likely to raise regulatory concerns.
Arm is a leading supplier of chip designs for smartphones, laptops, and other devices.
The company’s technology is also used in data centers and self-driving cars. An IPO would give Arm access to new sources of capital, which it could use to fund its growth and expansion into new markets.
The talks between Nvidia and Arm are still ongoing, and it is not yet clear whether an investment will be finalized.
However, the discussions highlight the growing interest in Arm from investors.
If an IPO does go ahead, it could be one of the biggest tech IPOs of the year.
