SoftBank Group’s Arm Holdings seeks to develop artificial-intelligence chips and simultaneously plans to launch the first products in 2025. UK-based Arm will set up an AI chip division and aims to build a prototype by spring 2025, while mass production will be handled by contract manufacturers in the autumn of 2025. Arm will pay for initial development costs, with SoftBank also contributing.
Once a mass-production system is established, the AI chip business could be spun off and placed under SoftBank. It is reported that SoftBank is already negotiating with Taiwan Semiconductor Manufacturing Corp (TSMC) and others over manufacturing, looking to secure production capacity.
The British chip designer, which licenses its chip designs and earns funds through royalties, has been expanding into the datacenter market, where operators are looking to build their own chips to power new AI models and reduce their reliance on dominant supplier Nvidia.
Discussions that Arm will benefit from a surge in AI computing have doubled the chipmaker's share price since its initial public offering last September, giving it a market value of more than $100 billion.
Meanwhile, during its reports earnings call on Monday morning, SoftBank Group Corp. reported its second straight quarter of profitability as the Japanese tech investor benefited from an artificial intelligence investment boom that has buoyed assets like Arm Holdings Plc.
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