Intel considers investing in Arm

Last month, reports emerged that Arm had completed the paperwork for its Initial Public Offering (IPO), with an optimistic forecast to commence public trading later this year. This IPO is expected to be one of the most substantial in the United States over the past decade. The chosen exchange for Arm’s shares is NASDAQ, with a fundraising objective ranging between 80 and 100 billion dollars. Goldman Sachs, JPMorgan Chase, Barclays, and Mizuho Financial Group have provided guidance for Arm’s IPO journey.

According to Reuters, senior executives at Intel are in discussions with SoftBank, deliberating their potential role as anchor investors in Arm’s IPO. Insiders disclosed that the negotiations are still in their infancy and could potentially collapse before the final listing. The scale of Intel’s intended investment in Arm, or the form of its participation, remains uncertain. This news led to a 7% increase in the software company’s stock price.

Regardless, the recent relations between Intel and Arm have become noticeably more interwoven than ever before. Intel and Arm previously entered into an agreement permitting chip designers to construct low-power SoCs based on Intel’s 18A manufacturing process. The initial focus will be on mobile devices, with plans for expansion into autonomous driving, IoT, and data centers in the future.

Recently, Arm made a substantial modification to its business model that has been in place for decades. It altered its licensing model for Arm-based patents, shifting from a charge based on a certain percentage of the chip’s average price to a percentage of the terminal device’s average price. Additionally, Arm has plans to fabricate its own chips.