Chip maker Arm is in discussions with graphics giant Nvidia regarding its upcoming initial public offering plans.

That's according to the FT, which reports that the two companies are in talks to bring the latter in as an anchor investor for the IPO. Arm is apparently set to go public on the New York Stock Exchange in September of this year.

Nvidia is reported to have want to come in at a share price that would value Arm at between $35 billion and $40 billion, but the chip maker apparently has its eyes set on a valuation closer to $80 billion.

The main reason to bring in a big investor such as Nvidia ahead of the IPO is a way for Japanese investment outfit SoftBank to at least begin its exit Arm. It bought the chip maker for £24 billion back in 2016.

Nvidia announced in September 2020 that it intended to buy Arm, but called off the deal due to "significant regulatory challenges".

This resulted in Arm laying off 960 members of staff.