Amazon is in talks to become a cornerstone investor in SoftBank Group Corp’s Arm Ltd ahead of its initial public offering (IPO), Reuters has reported.

Other tech companies, such as Alphabet, are also interested in investing in the company once it launches on the market.

Nekkei has reported that other companies looking to invest include Apple, Samsung Electronics and Intel.

Although there is talk to invest, sources close to Reuters have said that these investors would not gain any board seat or control.

Amazon’s potential involvement in the IPO underscores Arm’s significance in the cloud computing industry.

Amazon Web Services, an arm of the logistics giant in the cloud business industry, makes its own processing chip called Graviton, using Arm’s design.

It has been previously reported that Arm is seeking to raise between $8-10bn with plans to list on the Nasdaq in early September.

The company is also hoping that bringing cornerstone investors onboard will strengthen its ties with top customers and boost the IPO’s appeal.

SoftBank has been targeting a listing for Arm since a deal to sell the chip designer to Nvidia for $40bn collapsed in 2022 following objections from US and European antitrust regulators.

However, since the collapse, business has improved for Arm compared to the wider chip industry as a result of its focus on data centre servers and personal computers which generate higher royalty payments.

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