Nvidia considers investment in Arm as firm seeks $80bn valuation
Nvidia is reportedly engaged in discussions with Arm about becoming an anchor investor in the chip designer ahead of its initial public offering in New York.
The two chip companies are currently thrashing out a valuation, the Financial Times reported.
Nvidia is said to be seeking a long-term stake that would value Cambridge-based Arm between $35bn (£27bn) and $40bn (£31bn), while Arm is aiming for a valuation closer to $80bn (£62bn).
US firm Nvidia joins a list of more than ten companies that have shown interest in taking a long-term stake in UK-based Arm, according to the report.
This development comes after regulatory authorities thwarted Nvidia’s previous attempt to acquire Arm for $66bn (£51bn) last year due to concerns it could harm competition.
Apparently this time round the technology giants have proposed a minority investment in the range of low hundreds of millions of dollars. They have also approached regulators ahead of time to pre-emptively appease any concerns that may arise, the report said.
Arm declined to comment, while Nvidia did not immediately respond to a request for comment on the report.