Amazon in conversations to join as anchor investor in Arm ahead of IPO

Ahead of its IPO, Amazon.com is in discussions to become, along with other tech giants, a cornerstone investor in SoftBank Group Corp.'s Arm Ltd.

The IPO's potential participation by Amazon, which hasn't been previously reported, highlights Arm's importance in cloud computing. The cloud division of the internet behemoth, Amazon Web Services, uses Arm's design to create its own processing chip, the Graviton.

According to one of the people, Arm intends to list on the NASDAQ in the first few days of September. According to reporters, the company is looking to raise $8 billion to $10 billion.

According to reporters, Arm has been in discussions about an investment with about 10 technology companies, including Intel, Alphabet, and Nvidia. According to the sources, neither a board seat nor any control would be awarded to these investors.

According to one of the sources, Arm is hoping that bringing in cornerstone investors will strengthen its ties with top customers and increase the appeal of the IPO.

The IPO is anticipated to be a much-needed windfall for SoftBank, which is struggling to revive its sizable Vision Fund after many of its technology startup bets failed.

Since its deal to sell the chip designer to Nvidia for $40 billion fell through last year due to concerns from American and European antitrust regulators, SoftBank has been aiming for an Arm listing.

Due to its emphasis on data center servers and personal computers, which produce higher royalty payments, Arm's business has since performed better than the overall chip industry.