Amazon is reportedly in talks to become one of chipmaker Arm’s cornerstone investors ahead of its initial public offering (IPO) this September.

Reports recently emerged that the Cambridge-based chipmaker, which is owned by Japan’s SoftBank, is targeting an IPO valuation of up to £70 billion.

Sources told Reuters that Amazon is one of around 10 tech companies including Google parent Alphabet, Nvidia and Intel who are also in talks with Arm around a possible IPO investment.

Through these discussions, sources told the news agency that Arm is keen to attract big-name investors in a bid to heighten the attractiveness of the IPO, noting that any investment would not mean the potential investors would gain any board seats or control.

Having snubbed London in favour of a New York listing on the Nasdaq, despite UK prime minister Rishi Sunak’s best efforts to convince SoftBank heads to list the IPO in the City, sources previously told Reuters that Arm is seeking to raise $8 to $10 billion.

Plans for the IPO follow last year’s collapse of SoftBank’s attempted $40 billion sale of Arm to rival chipmaker Nvidia, which the Japanese conglomerate said ended due to “significant regulatory challenges”.

Earlier this year, Arm posted a 28 per cent revenue increase to $746 million in its third quarter of 2022 ended in December.

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