Arm Holdings Prepares for Launch of AI Chips By 2025

Arm Holdings

According to a report by Nikkei Asia on Sunday, Arm Holdings, a subsidiary of SoftBank Group, is planning to venture into the development of artificial intelligence (AI) chips, with the aim of introducing the first products by 2025.

Based in the UK, Arm intends to establish an AI chip division and target the creation of a prototype by the spring of 2025, as per the report.

Contract manufacturers will oversee mass production, slated to commence in the autumn of 2025.

Arm Holdings

Initial development costs, potentially amounting to hundreds of billions of yen, will be covered by Arm, with contributions from SoftBank, the report indicated.

Once a mass-production infrastructure is established, there are considerations to spin off the AI chip business and integrate it within SoftBank, the newspaper disclosed.

SoftBank is reportedly in discussions with Taiwan Semiconductor Manufacturing Corp (TSMC) and other entities regarding manufacturing arrangements, aiming to secure production capacity.

Arm Holdings

Requests for comments from Arm, SoftBank, and TSMC were not immediately responded to.

Arm, renowned for licensing its chip designs and generating revenue through royalties, has been diversifying into the data center market.

This move aligns with the trend among operators seeking to develop their own chips to drive new AI models and reduce reliance on dominant suppliers like Nvidia.

Nate O'Hara
Nathan is a seasoned commerce writer with a passion for unraveling the intricacies of the business world and distilling them into engaging narratives. During his academic journey, he delved deep into subjects like economics, marketing, and entrepreneurship, honing his analytical skills and developing a keen understanding of market dynamics.