In a significant move that’s reverberating through the tech industry, Apple has inked a groundbreaking agreement with Arm, set to supply chips “beyond 2040,” according to Arm’s IPO documents filed recently.
Arm, a technology company that owns the intellectual property underpinning the computing architecture of most smartphones, is stepping into the spotlight with its initial public offering (IPO) plans, aiming for a colossal $52 billion deal, touted as the largest of its kind in the U.S. this year. This IPO will see SoftBank Group, Arm’s parent company, offering 95.5 million American depositary shares at prices ranging from $47 to $51 each, as stated in Arm’s documents.
Apple’s relationship with Arm traces back to the early ’90s when Arm was founded, preceding the release of Apple’s Newton pocket computer in 1993, which employed an Arm-based processor chip. While the Newton venture faced challenges, Arm’s technology flourished, particularly in cell phone chips, thanks to its low power consumption, significantly extending battery life.
Today, Arm’s intellectual property is the backbone of the computing power in numerous smartphones, including Apple’s iPhone, iPad, and Mac devices. As Apple transitions away from using Intel chips to powering its devices with custom-designed silicon, the collaboration with Arm becomes all the more critical.
This agreement reaffirms the long-standing partnership between the two tech giants. Apple, along with other major tech players, notably invested $735 million in Arm’s IPO. Reuters was the first to confirm Apple’s strategic involvement in purchasing shares. However, what’s intriguing is that this particular deal was not mentioned in Arm’s initial IPO documents released on August 21, indicating that it was sealed in the short window between then and September 5.
Neither Arm nor Apple has offered further details or comments on this development, keeping the tech world speculating on the potential innovations and breakthroughs this partnership might bring. As Apple commits to building its future on Arm’s technology, the horizon for tech enthusiasts looks promising, with the collaboration poised to shape the digital landscape for decades to come.