ARM Wants to Make AI Chips, Will it Disrupt Nvidia’s Dominance?

Morrisseyn Technology – ARM, a processor core designer, plans to enter a new segment that will develop artificial intelligence (AI) chips. The company owned by SoftBank Group wants to launch its first AI chip product in 2025. To realize this plan, the British company will create an AI chip division which is targeted to make its first AI chip prototype in the spring of 2025.

Then, to mass produce these AI chips, ARM will collaborate with other companies in the fall of 2025. Currently, SoftBank is negotiating with TSMC and a number of other chip manufacturing companies to secure production capacity for these AI chips FOR4D.

The cost of developing this AI chip is said to be hundreds of billions of yen, one of which comes from SoftBank. However, when these chips are mass produced, the AI ​​chip business will be separated from ARM and will be directly under SoftBank FOR4D.

For your information, ARM is the manufacturer and design of processor cores whose licenses are used in almost all cellphone chips in the world. From there they get royalty income, which is then used to expand the data center business, where many companies want to make their own chips to run AI models and reduce their dependence on Nvidia.

ARM’s entry into the AI FOR4D ​​space comes at the right time, because demand for AI chips is increasing and so far it has almost doubled the value of Arm’s shares since its initial public offering last September 2023. ARM’s capitalization with this increase has now reached more than USD 100 billion.