SoftBank’s Arm Set to Unveil AI Chips in 2025 Amid Soaring Demand

SoftBank’s Arm Set to Unveil AI Chips in 2025 Amid Soaring Demand
In further evidence of the rush to take part in the AI revolution, SoftBank Group's subsidiary, Arm, is ready to enter the artificial intelligence chip market by 2025, targeting a sector experiencing explosive growth. 
The British chip designer, predominantly owned by Japan’s SoftBank with a 90% stake, plans to establish a dedicated AI chip unit tasked with developing a prototype by spring 2025. With mass production expected to start in the fall of 2025. Arm is in talks with Taiwan’s TSMC, among other contract manufacturers to produce these AI chips.
Arm is known for its architecture, which underpins chip designs, and it licenses these designs to major players like Qualcomm and Nvidia. The company receives royalties from each sale, underlining its pivotal role in the tech ecosystem with claims that 99% of premium smartphones utilize its technology. 
The development of its AI chips is projected to require an investment of hundreds of billions of yen in initial costs, reflecting the company's commitment to securing a lead in the AI space.
What Does This Mean for Me?
The move to develop AI chips aligns with Arm's broader ambitions under SoftBank’s ownership. Since SoftBank acquired Arm for $32 billion in 2016 and subsequent Nasdaq listing last year, Arm’s valuation has surged, with its shares climbing nearly 45% this year alone, pushing its market capitalization to over $113 billion. 
This growth trajectory is supported by SoftBank’s aggressive investment strategy, with plans to channel $960 million by next year into enhancing its computing capabilities for generative AI.
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