SoftBank Is Said to Line Up Apple, Nvidia as Strategic Arm IPO Backers

ARM, previously acquired by SoftBank, is preparing for a major IPO with strategic investors like Apple, Intel, and NVIDIA. The company aims to raise $5-7 billion, focusing on expanding beyond the stagnant smartphone market into areas like AI and cloud computing. SoftBank's founder, Masayoshi Son, had high hopes for ARM's growth in AI and IoT, but the company has faced challenges, particularly in China, due to geopolitical tensions. The IPO serves as a backup plan after a failed sale to NVIDIA.

What was one of the strategic options ARM considered before its IPO?

• Partnering with Google

• Selling to NVIDIA

• Merging with Qualcomm

• Acquiring Intel

Which companies are involved as strategic investors in ARM's IPO?

• Google, Amazon, and Facebook

• Apple, Intel, and Samsung

• Microsoft, IBM, and Oracle

• Tesla, SpaceX, and Blue Origin

What is ARM's primary business model?

• Developing software applications

• Selling chip design templates

• Providing cloud storage solutions

• Manufacturing smartphones

Why is ARM looking to expand beyond the smartphone market?

• The smartphone market is rapidly growing

• ARM has no presence in the smartphone market

• The smartphone market is stagnant

• Smartphones are becoming obsolete

What is a significant risk factor for ARM mentioned in the IPO prospectus?

• Competition from European markets

• Geopolitical issues in China

• Lack of innovation in chip design

• Decline in global smartphone sales