Arm Holdings To Unveil AI Chip In 2025

Arm Holdings, a UK-based company, plans to develop an AI chip and unveil the first product by 2025. The company intends to establish a dedicated division for AI chips and plans to have a prototype ready by spring 2025, as reported by Nikkei Asia

Contract manufacturers are expected to handle mass production, which will commence in autumn 2025.

Initial development costs, potentially reaching hundreds of billions of yen, will be covered by Arm, with additional contributions from SoftBank.

Following the establishment of a mass-production infrastructure, there’s a possibility that the AI chip business could be spun off and incorporated into SoftBank, the newspaper mentioned.

Also Read: U.S. unveils $11 billion programme to boost chip research

SoftBank is reportedly in discussions with Taiwan Semiconductor Manufacturing Corp (TSMC) and other manufacturers to secure production capacity.

Arm, known for licensing its chip designs and generating revenue through royalties, has been expanding into the data centre market.

Operators in this space are seeking to develop their chips to fuel new AI models and reduce dependence on major suppliers like Nvidia.

SoftBank is anticipated to report a return to loss-making territory in its upcoming earnings release on Monday.

Investors are keen to learn about potential new growth investments, considering the company’s substantial liquidity and the possibility of capitalizing on its significant stake in Arm, whose share price surged approximately twofold in February amidst excitement surrounding AI advancements.