Arm, a semiconductor subsidiary of the Japanese investment holding company SoftBank Group, is looking for a lucrative job artificial intelligence race.
Cambridge, based in the UK Arm assembles AI chip moduleaccording to a report by Nikkei Asia, which aims to launch a prototype in spring 2025 and begin mass production by the fall. It’s part of SoftBank CEO Masayoshi Son’s $64 billion bet to bring the chipmaker into the company the exploding artificial intelligence market and develop its data centers, robots and energy generation.
Armwhose technology can be found in smartphones and desktop computers he has already started to see “There’s momentum and momentum in everything AI-related,” company CEO Rene Haas said in a February call with analysts. Its revenues in the last three months of 2023 increased thanks to long-term licensing agreements with leading technology companies that exploit the most advanced ARM processors to run AI products.
2024 started with a second consecutive quarter of profits, with approx net income of 328.9 billion yen ($2.11 billion) from January to March. Haas said last week on an earnings call that customers were turning to Arm central processors replenish Nvidia AI chips for exploit in their data centers.
Softbank, which has 90% of shares in Arma, is already in talks Taiwan Semiconductor Manufacturing Corp. (TSMC) and others involved in production who want to secure production capacity. Once Arm achieves mass production of AI chips, the company could be spun off and become a direct subsidiary of SoftBank, Nikkei Asia reports.
This move would put Arm in competition with established AI chipmakers, namely: NvidiaWhich dominates the market and it is global largest AI chip manufacturer.
According to the report, the global AI chip market was valued at $14.9 billion in 2022 and by 2032. Related market research found. The market is already growing at a breakneck pace, with gigantic AI data centers in companies such as Microsoft AND Amazon requiring more chips with more advanced capabilities.
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