British chip designer Arm is working on an IPO to raise $10 billion, with Intel a potential big investor.

After a failed takeover by Nvidia, the UK arm will soon go public. SoftBank lost a lot of money due to the Nvidia debacle and therefore wants to raise up to 10 billion US dollars through an initial public offering, a so-called IPO.

After such an IPO, Arm enters into discussions with several companies about participation. According to Bloomberg, Intel shows great interest in as anchor investor pull the cart. Traditionally, stocks worth $100 million to $200 million are sold to show the market that the IPO is interesting.

If the talks are successful, Intel will definitely appear on the list of investors before the start of the IPO on the US stock exchange. Presumably Arm will appear on the Nasdaq with his focus on technology.

Why Intel and Arm?

A lot has changed since CEO Pat Gelsinger took over in 2021. One of the company’s main goals is to once again have the world’s most advanced chip manufacturing process. After a five-year delay in introducing 10 nanometers (now called Intel 7), Intel lost its leadership position to TSMC.

That tide is turning with the new Intel 4 process, which is expected to be operational in 2024. In addition, it wants to open its factories to other manufacturers. With most chips today being an ARM design, it would be a logical decision for Intel to position itself close to the source.

Already close cooperation

Both parties announced close cooperation at the beginning of the year. ARM customers can bring their ARM-based designs to Intel’s factories. Here Intel would like to react to the high demand for chip production in the market. This creates an additional revenue stream and allows Intel to capitalize on sectors where it is lacking.

Arm, in turn, offers access to advanced manufacturing capabilities with factories in Europe and the United States. This in turn is attractive for its own customers, such as Qualcomm. Intel had previously signed an agreement with MediaTek.