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The Arm US headquarters in San Jose, California, on Wednesday, Sept. 6, 2023.

David Paul Morris | Bloomberg | Getty Images

Arm, the chip design firm that supplies core technology to companies including Apple and Nvidia, priced its IPO at $52 a share, according to a source familiar with the matter.

Arm’s fully-diluted market cap, which includes outstanding restricted stock units, is about $55.5 billion at the $52 offer price.

The UK-based company is listing at least 95.5 million American depository shares on the Nasdaq, and SoftBank, its current owner, will control about 90% of the company’s outstanding shares.

The offering is above Arm’s expected price range of $47 to $51. The company will start to trade on Thursday under the symbol “ARM.”

Arm said in its prospectus that revenue in its fiscal year that ended in March slipped less than 1% from the prior year to $2.68 billion. Net income in fiscal 2023 dropped 22% to $524 million.

Arm is riding the wave of excitement around artificial intelligence as it aims to crack open the tech IPO market after a nearly two-year pause. It’s set to be the biggest technology offering of the year.

Arm’s valuation for a chip company is exceedingly rich when compared to any player in the market other than Nvidia. At $55.5 billion, Arm would carry a price-to-earnings multiple of over 106, based on profit in the latest fiscal year.

Nvidia is valued at 108 times earnings, but that’s after forecasting revenue growth of 170% for the current quarter, driven by AI chips. The Invesco PHLX Semiconductor ETF, which is designed to measure the performance of the 30 biggest U.S. chip companies, has a price-to-earnings ratio of about 25.

Many of Arm’s most important customers, including Apple, Google, Nvidia, Samsung, AMD, Intel and Taiwan Semiconductor Manufacturing Company, said they would buy shares as part of the offering. Arm’s technology is used in 99% of mobile processors around the world.

Arm’s architecture outlines out how a central processor works at its most basic level, such as how to do arithmetic or how to access computer memory. The company was originally founded in 1990 to build chips for devices with batteries, and took off when it started to be widely used in smartphone chips. Arm’s instruction set uses less power than the x86 architecture used in PC and server chips by Intel and AMD.

While some of Arm’s customers just use the instruction set and design their own CPUs, Arm also licenses entire designs of its own to chipmakers they can use as CPU cores in their own chips. Amazon uses Arm CPU designs in some of its server chips.

In a presentation to investors, Arm officials said the company has room to grow beyond just smartphones, and wants to design more chips for data centers and AI applications. It said it expects the total market for chip designs to be worth about $250 billion by 2025.

WATCH: Arm reportedly prices IPO at $52 per share

Arm reportedly prices IPO at $52 per share

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Brazil supreme court unfreezes assets of Elon Musk’s Starlink, X after taking fines

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Brazil supreme court unfreezes assets of Elon Musk's Starlink, X after taking fines

Elon Musk, chief executive officer of Tesla Inc., at the US Capitol in Washington, DC, US, on Wednesday, July 24, 2024. 

Samuel Corum | Bloomberg | Getty Images

Brazil’s supreme court announced Friday that it ordered banks to transfer funds from Starlink and X accounts to pay fines the court levied against Elon Musk’s social network.

The court’s top justice, Alexandre de Moraes, and a panel of five other justices, found that X had repeatedly violated Brazilian law when it refused to appoint a legal representative in the country, and when it refused to remove content or profiles from its platform that the court determined to be harmful towards democratic institutions in Brazil.

The court had nearly 18.4 million Brazilian reals, or approximately $3.3 million, transferred out of the accounts. Musk acquired X, then known as Twitter, in 2022. Starlink is the satellite internet service run by SpaceX.

Following the transfers, the court ordered that the frozen bank accounts and assets of X and Starlink be released, saying there was no longer any need to keep them.

The court suspended X at the end of August, and the suspension remains in place. 

Musk and his businesses have said they view the actions of de Moraes as “illegal,” and his court’s orders as having been issued without due process. X and SpaceX did not immediately respond to requests for comment on Friday.

Brazilian news agency UOL reported earlier this month that some of the accounts de Moraes ordered Musk to suspend at X belong to users who allegedly threatened federal police officers involved in a probe of former right-wing Brazilian President Jair Bolsonaro.

Bolsonaro has been accused of instigating Brazil’s Jan. 8 riots and of attempting to stage a coup there.

Musk is a proponent of Bolsonaro, in part because the former Brazilian president authorized his business Starlink to operate in the country.

Musk has been ramping up insults and calls to impeach de Moraes since April. On Sept. 5, his long-time collaborator at the helm of SpaceX, COO Gwynne Shotwell, also took shots at the Brazil supreme court online.

She wrote, “@Alexandre, please stop harassing Starlink and let us keep serving the people of Brazil.”

Backers of de Moraes and the STF have seen the orders against X Corp. as an assertion of Brazilian sovereignty.

WATCH: New data shows Musk’s Twitter takeover is worst deal for banks since 2008 financial crisis

New data shows Musk's Twitter takeover is worst deal for banks since 2008 financial crisis

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Tesla Semi fire in California took 50,000 gallons of water to extinguish

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Tesla Semi fire in California took 50,000 gallons of water to extinguish

Tesla Semi

Courtesy: Tesla

A single-vehicle collision last month involving a Tesla Semi electric truck took 50,000 gallons of water to extinguish and required aircraft to dump fire retardant overhead, according to a preliminary report on Friday from the National Transportation Safety Board.

The crash, which occurred on California’s Interstate 80 west of Lake Tahoe, is being investigated by the NTSB. CAL-Fire’s efforts put out the flames cooled the vehicle’s massive battery to keep it from reigniting and prevented the fire from spreading beyond the crash site, the NTSB said.

The Tesla truck, driven by an employee, was headed to the company’s battery factory in Sparks, Nevada, from a warehouse in Livermore, California, the report said. The incident closed down part of the I-80 for 15 hours.

Tesla CEO Elon Musk first showed off the Semi truck design at an event in November 2017, promising it would come to market in 2020. The company still hasn’t started producing the trucks in high volume, but it’s building out production lines at its Nevada facility.

“Preparation of Semi factory continues and is on track to begin production by end of 2025,” Tesla said in its second-quarter earnings report in July.

The NTSB report confirmed that Tesla’s driver assistance systems, which are marketed as Autopilot and Full Self-Driving (Supervised) in the U.S., were not “operational” at the time of the Semi collision and fire.

Tesla didn’t respond to a request for comment.

WATCH: The Tesla Semi is here

The Tesla Semi is finally here

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Oracle’s Larry Ellison briefly tops Jeff Bezos to become world’s second-richest person

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Oracle's Larry Ellison briefly tops Jeff Bezos to become world's second-richest person

Larry Ellison, chief technology officer of Oracle (L), and Jeff Bezos, founder and executive chairman of Amazon.

Reuters

Oracle‘s best week on the stock market since 2021 has bolstered Chairman Larry Ellison’s net worth, briefly edging him past Amazon founder Jeff Bezos on Friday to become the world’s second-richest person.

Ellison’s net worth reached $208.4 billion shortly after the market open, then fell to $199 billion, according to Forbes’ real-time billionaires list. Bezos, who has claimed the title of world’s second-richest person on and off over the years, is worth $205 billion. Only Tesla CEO Elon Musk, at $252 billion, is currently above him.

Oracle shares gained 1.2% to $163.38 on Friday after the database vendor bumped up its fiscal 2026 revenue guidance and issued a rosy forecast as far out as fiscal 2029. The company issued the forward-looking revenue figures at its annual CloudWorld conference in Las Vegas.

The stock rallied 11% on Tuesday after the company reported quarterly results that topped expectations. Oracle shares continue to reach new highs and are now up about 56% this year, behind only artificial intelligence chipmaker Nvidia — up 139% — among large-cap tech stocks.

Ellison, who co-founded Oracle in 1977, has been the biggest beneficiary of the boom. He owns about 40% of the outstanding stock, making him the company’s biggest stakeholder. His company’s revival in recent years has been sparked by its improving position in cloud infrastructure and growing adoption of its cloud databases.

Bezos, 60, and Ellison, 80, are jockeying for the title of world’s second-richest person three days after their companies forged a new partnership. On Monday, Oracle said its database software will become available for AWS customers to use atop Oracle hardware sitting inside of Amazon data centers.

Over the past year, Oracle has also forged similar partnerships with Microsoft and Google, the other two leading cloud infrastructure companies. Ellison told analysts on this week’s earnings call that Oracle is now in prime position in the cloud and in traditional data centers.

“With Oracle Database to be able to run AWS, Microsoft and Google, is incredibly important,” Ellison said on the call. “It will absolutely accelerate database growth in the public cloud. But we expect that private clouds will greatly outnumber public clouds as companies decide they don’t want — they want the Oracle Cloud behind their firewall, in their datacenter, with no neighbors.”

— CNBC’s Jordan Novet and Ari Levy contributed reporting.

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