According to those reports, Softbank which is currently negotiating terms with Nvidia after receiving an approach last month, is considering the possibility of taking a stake in Nvidia should it end up acquiring Arm.
Arm, he British chip designer, was bought by SoftBank for $32 billion in 2016, its largest-ever purchase, in part to expand into the internet of things.
Earlier this year SoftBank unveiled a 4.5 trillion yen ($42.50 billion) plan to buy back shares and reduce debt, and as part of the plan the group has been selling down core assets including stakes in Chinese ecommerce giant Alibaba Group Holding and U.S. wireless carrier T-Mobile US.