Amazon, one of Arm's largest clients, uses Arm's designs in its Graviton server processors. Arm's chip designs are popular in smartphones and other markets where efficiency and low power consumption are important. The company's CEO, Rene Haas, aims to capture a larger share of the data center market, which is part of the appeal for IPO investors.
Key takeaways:
- Amazon CEO Andy Jassy is reportedly in talks to invest in chip designer Arm ahead of its planned IPO, which could raise as much as $10 billion.
- Arm, owned by SoftBank Group Corp., is preparing for what could be the biggest tech IPO of the year, with a targeted valuation of $60 billion to $70 billion.
- Amazon, one of Arm's largest clients, uses Arm-based chips in its Web Services operation due to their cost and efficiency.
- Arm's IPO would be the largest in the tech industry since Alibaba Group Holding Ltd. in 2014 and Meta Platforms Inc. in 2012.