Arm in talks to bring in Nvidia as anchor investor ahead of planned IPO - FT

Arm, a chip designer company headquartered in the United Kingdom, is said to be in talks with Nvidia (NASDAQ:) to secure the latter as a primary investor for its upcoming initial public offering, as undisclosed insiders mentioned to the Financial Times.

Arm is hopeful that Nvidia, who recently achieved a valuation of over $1 trillion and became the first chip manufacturer to do so, will invest in its initial public offering (IPO) for a considerable period of time. This revelation was made by individuals familiar with the matter, as reported by the FT.

According to sources, the conversations primarily revolve around the estimated worth of Arm. Nvidia intends to propose a per-share cost that would result in Arm being valued at a total of $35 billion to $40 billion. In contrast, Arm prefers the number to be around $80 billion.

Nvidia's potential investment could assist in strengthening Arm's bid to become a publicly traded company by alleviating persistent worries among investors.

According to the FT, both firms have reached out to regulators in the United States to alleviate any potential concerns. Last year, the planned acquisition of Arm by Nvidia, valued at $66 billion, was abandoned due to competition apprehensions expressed by regulators in the United States, United Kingdom, and European Union.