Amazon is in talks about joining technology companies as a cornerstone investor in SoftBank Group Corp’s Arm Ltd ahead of its initial public offering (IPO), sources were quoted as saying by The Economic Times.

Arm plans to list on the Nasdaq in early September this year and is seeking to raise between $8 billion to $10 billion, revealed a Reuters report. 

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The ET report further said that Amazon’s involvement in Arm’s IPO can underscore its significance in cloud computing. Amazon Web Services, the internet giant's cloud business, makes its own processing chip called Graviton, using Arm's design.

Arm has been in talks with about 10 technology companies including Intel, Alphabet and Nvidia, for about an investment ahead of its IPO, according to Reuters report. However, the investors would not gain any board seat or control.

The sources further revealed that Arm is hoping to bring cornerstone investors onboard will strengthen its ties with top customers and boost the IPO's appeal.

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SoftBank has been targeting a listing for Arm since its deal to sell the chip designer to Nvidia for $40 billion collapsed last year because of objections from U.S. and European antitrust regulators.

As per reports, IPO is a much-needed boon for SoftBank as many of its bets on technology startups soured. However, Arm’s business has flared better than the broader chip industry after it shifted its focus on data center servers and personal computers that generate higher royalty payments.