FX: Arm is expected to become the largest technology IPO this year, Amazon seeks to become an anchor investor

According to people familiar with the matter, Amazon is in talks with other technology companies.Hoping to become an anchor investor in the initial public offering (IPO) of Arm Limited,This is in preparation for an upcoming transaction,The deal could raise up to $10 billion.

According to the anonymous person familiar with the matter, several technology companies have discussed with Arm to support an IPO, and Amazon is one of them.The IPO is expected to take place next month.As a chip design company, Arm's clients include the world's largest technology companies.It has also held discussions with companies such as Intel and Nvidia.

Representatives for Amazon and Arm declined to comment. Reuters previously reported on Arm's talks with Amazon.

Arm, a subsidiary of SoftBank Group, is gearing up for the biggest technology IPO of the year. According to Bloomberg, Arm has spent months talking to some of its top clients about going public. Amazon, which has a large web services business, is one of Arm's biggest clients.It favors chips based on the Arm architecture because of their low cost and high efficiency.40,000 Amazon customers rely on this technology.

Bloomberg reported last week that Arm is targeting an IPO at a valuation of $60 billion to $70 billion as soon as September.A craze aimed at harnessing artificial intelligence chips.The roadshow is scheduled to begin in the first week of next month, with IPO pricing to be determined the following week, according to a person familiar with the matter. SoftBank of Japan bought the chip company for $32 billion in 2016.

Since the beginning of this year, the valuation of chip companies has generally soared, especially those with a presence in the field of artificial intelligence devices.Shares in Nvidia, which makes so-called artificial intelligence accelerators, have more than tripled this year. The company had previously planned to buy Arm, but had to abandon the acquisition last year after facing regulatory hurdles. After the failed acquisition, SoftBank, led by billionaire Masayoshi Son, began to move forward with Arm's IPO plan.

In the best-case scenario,Arm's IPO would be the largest in the tech industry since Alibaba Group in 2014 and Meta (then Facebook) in 2012.Arm's IPO was previously shelved due to economic instability and the conflict between Russia and Ukraine, and the IPO is expected to take place during a downturn in the IPO market.

Amazon uses Arm's design in its Graviton server processors to replace traditional data center chips supplied by Intel.Amazon has used Arm's technology to produce multiple generations of Graviton and other types of chips.

One of the key goals of Arm CEO Rene Haas is toTake a bigger slice of the data center market.This is also one of the reasons why IPO investors are attracted. Arm's chip design has been widely used in smartphones and other markets that focus on efficiency and low power consumption.

FXTThe investment will continue to wait and see the development of this IPO plan.