Aramco Digital is reportedly in talks to take a significant minority stake in US software maker Mavenir Telecom.
As reported by Reuters, Aramco Digital, the digital arm of Saudi Arabian oil company Aramco, is in discussions over a potential $1 billion investment.
Reuters reports that the deal values Mavenir at $3bn. The publication notes that Mavenir is working with investment bank Evercore.
Funding is set to go towards 5G and support to ready Mavenir for 6G technology, which is set to roll out around 2030.
Texas-based Mavenir has been a big advocate of Open RAN (Radio Access Network), a technology that seeks to diversify the vendor supply chain. The purpose of Open RAN is to mix and match vendors and technology providers to diversify supply chain security, promote competition, and drive cost efficiencies.
Mavenir has signed Open RAN deals with a few carriers, notably with UK operator Virgin Media O2 last year.
The company also has deals with Norway's Ice to support the operator's 4G and 5G networks and Bermudan newcomer Paradise Mobile.
However, the Open RAN battle has been tough, with vendors such as Ericsson, commanding some of the bigger deals, notably its $14bn deal with AT&T.
Aramco's reported interest also comes amid a slump in Mavenir's prospects, with S&P Global revealing last month that it did not believe the company has sufficient liquidity to repay the outstanding balance on a $133 million loan that matures in January.
In May, Mavenir announced it received up to a $75m investment from an existing backer. Despite this, S&P Global noted Mavenir had about $17m cash on the balance sheet and around $32m availability on its senior secured revolving credit facility.
To date, Mavenir has raised $800m through a series of funding rounds.
Earlier this year, Aramco Digital and Intel announced plans to build Saudi Arabia's inaugural Open RAN development center. The plans were outlined as part of Saudi Arabia's plans to build more agile telecom networks, and are also part of Saudi Arabia's Vision 2030, which focuses on technological advancements and economic diversification.