• ARM filed for an IPO to go public, attracting interest from major tech firms.
• The IPO is expected to value ARM at between $50 billion and $55 billion.
• SoftBank, ARM’s parent company, will retain 90% of the shares.

In the previous month, chip designer ARM began the process of becoming publicly traded by filing for an IPO. According to insiders who spoke with Reuters, several prominent tech companies have shown strong interest.

Last month, ARM, a chip designer, began the process of becoming a publicly traded company by filing for an IPO. According to insiders speaking to Reuters, many well-known tech companies have shown strong interest.

The upcoming IPO is expected to set a valuation between $50 billion and $55 billion. About 10% of the shares will be allocated to partners, while SoftBank, ARM’s parent company, will retain the remaining 90%.

Among the partners, Nvidia is noteworthy. They had made a prior attempt to acquire ARM for $40 billion in a deal in 2020, but it was ultimately abandoned due to regulatory concerns.

Intel and AMD Also Onboard

ARM has the support of various entities closely tied to ARM-based devices, such as Apple, Alphabet (the owner of Google), and Samsung. The list also includes the significant x86 players, Intel and AMD. Furthermore, Cadence Design Systems and Synopsys are part of this group, with the possibility of additional partners joining in.

Amazon and Qualcomm Backed Out

Apple and Nvidia are said to be planning to purchase shares in the range of $25 million to $100 million each. Notably, Amazon, initially interested in investing, has decided to withdraw its plans, according to insiders. It’s important to mention that Amazon, responsible for designing Gravitron processors for AWS servers, was initially part of the investment discussions.

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Notably missing from the list is Qualcomm, despite previous discussions about forming a consortium with other parties to pursue an ARM acquisition. However, it’s essential not to overinterpret Qualcomm’s absence, as the new shareholders won’t have seats on ARM’s board or control over the company’s strategic decisions.

The main goal seems to be preventing any one company from gaining complete control of ARM, similar to Nvidia’s previous attempt.

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