British chip designer Arm is in talks with US GPU giant Nvidia to be an anchor investor in the former's initial public offering (IPO).

Nvidia pulled out of a $66 billion bid to acquire Arm last year due to regulatory pushback, but has since seen its own valuation balloon with the current artificial intelligence boom.

Arm Neoverse N1
– Arm

The Financial Times reports that Nvidia is seeking a share price that would value Arm at between $35bn and $40bn, while Arm itself is pushing for a valuation closer to $80bn.

The investment would likely be in the low hundreds of millions of dollars.

Anchor investors buy a stake in a company at an agreed price ahead of an IPO to help ensure stability and reassure other potential investors. The IPO, which was announced after Nvidia's acquisition fell apart, could occur as soon as this September.

Arm develops an instruction set architecture that it licenses out to other companies, including Apple, Microsoft, Qualcomm, and Samsung. Nvidia also licenses Arm designs for its Grace CPU.