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Nvidia in talks to anchor Arm IPO

Arm Nvidia
Image credit: Arm

Arm is reportedly in talks to bring in Nvidia as an anchor investor ahead of its IPO in New York later this year.

First reported by the FT, it appears Nvidia is still interested in the Cambridge company despite the regulatory challenges it faced during its attempted acquisition last year.

Both Arm and Nvidia declined to comment on the story.

Nvidia is reportedly in discussions to buy shares at a price that values Arm in the $35bn to $40bn valuation range, which would assist Softbank in selling its shares after buying it for £24bn.

Arm’s upcoming New York IPO follows failed attempts by the three prime ministers to persuade Arm’s owner SoftBank to list in the UK, but the Japanese conglomerate ultimately chose the Nasdaq.

However, a later dual listing in London hasn’t been completely ruled out, said Arm’s CEO Rene Haas at the time.

The blow for the London Stock Exchange put a spotlight on the UK’s attractiveness for tech IPOs. The financial regulator is looking at ways to improve listing conditions, such as removing the standard or premium listing choice.

California-headquartered Nvidia makes graphics processing units. Its GPUs are widely considered one of the best in the market for AI applications, which has helped drive up the company’s share price.

Nvidia, through its venture capital division, last month invested in British generative AI firm Synthesia’s $90m (£71.4m) Series C round.

That same month, innovation agency Digital Catapult teamed up with Nvidia last month on a West England creative tech challenge.