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Amazon in talks to anchor Arm IPO – report

Arm Amazon
Image credit: Ascannio / Shutterstock

Tech giant Amazon is reportedly in talks over becoming an anchor investor in the upcoming IPO of Cambridge-headquartered semiconductor firm Arm.

Amazon would join a host of other big-name tech firms said to be interested in backing the SoftBank-owned semiconductor designer, including Nvidia, Apple and Samsung.

First reported by Reuters, Amazon’s interest demonstrates the importance of Arm’s technology in the cloud industry. Amazon is currently an Arm customer, having used one of the firm’s chip designs for its cloud business Amazon Web Services (AWS).

UKTN has approached Amazon for comment.

Arm’s upcoming listing on New York’s Nasdaq exchange, set to take place as soon as September, is expected to be the biggest IPO of the year.

The bulk of investors that have demonstrated interest in supporting the IPO have been existing customers that already use the company’s designs. Sources told Reuters that Arm is hoping to strengthen ties with its major customer through investments. However, it would not give away any board seats or control.

The public launch could value the company at more than £50bn, which would come as a major boost to parent company SoftBank.

The Japanese conglomerate posted its quarterly financial report this week, revealing total losses of £2.6bn, including a £71m loss from its tech investment arms, the Vision Funds.