Exclusive: SoftBank Group's Arm AI Chip Launch Plans for Revealed

 

Arm Holdings, a subsidiary of SoftBank Group, is planning to develop artificial intelligence (AI) chips and aims to launch its first products by 2025, as reported by Nikkei Asia on Sunday. According to the report, the UK-based company will establish a dedicated AI chip division and intends to have a prototype ready by spring 2025. 

The production of these chips will be outsourced to contract manufacturers, with mass production expected to commence in the autumn of the same year. Arm will cover the initial development costs, estimated to be in the hundreds of billions of yen, with additional funding from SoftBank. 

The report also mentioned the possibility of the AI chip business being spun off and integrated into SoftBank once a mass-production system is in place. Negotiations are already underway with Taiwan Semiconductor Manufacturing Corp (TSMC) and other manufacturers to secure production capacity. Neither Arm, SoftBank, nor TSMC were available for comments on the Nikkei report. 

As a prominent chip designer that generates revenue through licensing its chip designs and collecting royalties, Arm has been venturing into the data center market to cater to the increasing demand for custom chips to power new AI applications, reducing dependence on major suppliers like Nvidia.

 The anticipation of Arm's success in the AI computing sector has led to a doubling of its share price since its IPO last September, pushing its market valuation above $100 billion. SoftBank is expected to report a financial loss on Monday. 

Investors are keen to learn about potential growth investments, given the company's substantial liquidity and the opportunity to monetize its significant stake in Arm, whose share price surged in February due to optimism surrounding AI advancements. Exclusive: SoftBank Group's Arm AI Chip Launch Plans for Revealed