Chip maker Arm is going IPO Right Away

A major IPO of 2023

Friends,

The story of Softbank’s AI based Vision Fund is one for the ages, so too it’s acquisition of UK based Arm.

Masayoshi Son is now 66 years old and he’s a gambler on the biggest stages of Venture Capital. A Warren Buffett he is not.

Softbank has been trimming down its stake in Alibaba as it tries to recoup losses from last year’s meltdown in technology shares. It comes as absolutely no surprise that Arm is heading to the NASDAQ, over the London stock exchange. Companies spinning out IPOs of other companies they acquired is nothing new.

Last fiscal year, SoftBank recorded a $32 billion loss at its Vision Fund investment arm, which has backed some of the largest names in technology. For all the incredible hits, it’s the major losses of that fund that stand out in 2023.

• Arm, which is owned by SoftBank, filed on Monday to list on the Nasdaq.

• SoftBank agreed to acquire Arm for $32 billion in 2016.

Softbank, its Vision Fund and the ARM IPO are all of course connected. Among the losses, the Japanese conglomerate said its Vision Fund 1 made an unrealized loss of $1.6 billion each in SenseTime Group and GoTo and nearly $800 million in DoorDash. The fair value of SoftBank’s portfolio was marked down over the quarter by $2.3 billion to $138 billion.

Softbank’s Vision Fund was making big bets in A.I. way before Generative A.I. came to the scene.

The ARM IPO is going to be pretty epic and have a ticker $ARM.