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Amazon Reportedly to Invest in Chipmaker Arm’s Initial Public Offering

The media reported that Amazon is currently negotiating to invest in the initial public offering (IPO) of the chip manufacturer Arm.

Amazon Reportedly to Invest in Chipmaker Arm’s Initial Public Offering

Also, according to information available to the media, SoftBank Corporation, whose ownership structure includes Arm, is negotiating with Google and other companies with a high level of dependence on semiconductors ahead of the listing of the chip manufacturer on the Nasdaq.

Amazon Web Services (AWS) is currently one of the world’s largest cloud computing providers. There is information that the e-commerce giant, whose scope of activity extends beyond the trade industry, has begun to produce its own chips based on Arm developments. This means that Amazon is interested in investing in the activities and development of a microchip manufacturer and is motivated to signal strong approval of the brand’s promotion to the server market.

The media, citing an unnamed source, report that every major technology company that is on the list of Arm customers or relies on the development of this firm has the opportunity to invest in a chip manufacturer. Amazon took advantage of this commercial offer. The media also report the presence of about 10 more potential investors.

The representative of Amazon did not answer the journalists’ questions about the interaction with Arm in the framework of investment activities. SoftBank and Google have not yet commented on the chip maker’s IPO.

SoftBank investors believe that Arm will receive a market valuation of at least $60 billion at the start of the listing. Media sources reported that the corporation offered Nvidia to participate in the investment of the mentioned brand. As part of these negotiations, the stock price appeared, according to which the value of the chip manufacturer is from $ 35 to $ 40 billion. Insiders also report that Arm wanted to be valued at about $80 billion.

Nvidia tried to buy the chip maker from SoftBank for $40 billion. Last year, a potential deal was canceled.

IPO Arm is regarded by many experts as a ray of light in the dark season of public offerings. In this case, good prospects are predicted against the background of growing demand for chips, stimulated by advances in artificial intelligence.

To meet the demand for chips, Nvidia has introduced a superchip, which improves performance and speed, for use in generative AI and other accelerated computing. The Grace Hopper superchip will become the basis of systems supplied by manufacturers from the second quarter of next year.

Nvidia, whose value currently exceeds $1 trillion, is the largest player in the field of artificial intelligence, and this fact is beyond doubt. The company’s GPUs are mentioned in research articles 90 times more often than the best startups for the production of AI chips.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.