Nvidia to be a Key Investor in Arm IPO

The Sources on July 12 reported that chip designer Arm is in talks to bring in Nvidia as an anchor investor as it moves forward with plans for a New York listing as soon as September.

Nvidia is the most recent company to hold talks with Softbank-owned Arm about acquiring a long-term stake in the company during its initial public offering. Sources reported in June that Arm was in talks with more than ten companies, including existing partners such as Intel.

According to one person familiar with the discussions mentioned in the report, the two companies are negotiating over valuation, with Nvidia preferring a stake worth between $35 billion and $40 billion. According to the source, Arm is looking for a valuation of around $80 billion.

Last year regulators struck down Nvidia's planned acquisition of Arm worth $66 billion on competition grounds.

This time Nvidia and Arm have proposed a small minority investment in the low hundreds of millions of dollars and have contacted regulators in advance to allay fears, according to people close to the discussions referenced.