SoftBank’s Arm set to launch AI chips by 2025
  • May 13, 2024 9:25 pm
  • Ayush Rawal
  • 0

The Dawn of AI Chips

SoftBank, a name synonymous with cutting-edge technology, is set to launch AI chips by 2025. This move comes amid an explosive demand for AI technology, marking a significant milestone in the tech industry.

Softbank reportedly planning to spend $960 million to develop its own AI model

The Driving Force

The driving force behind this initiative is Arm, a subsidiary of SoftBank. Arm, which holds a 90% stake by SoftBank, is planning to set up an AI chip unit. The goal? To build a prototype by spring 2025.

The Production Plan

SoftBank isn’t going at it alone. They’re in talks with contract manufacturers, including Taiwan’s TSMC, to produce the AI chips. The mass production is slated to begin in the fall of 2025.

The Market Response

The market has responded positively to this news. Arm shares have risen nearly 45% so far this year, and its market capitalization stands at over $113 billion.

SoftBank’s Arm set to launch AI chips by 2025

The AI Chip Dominance

The launch of AI chips by Arm is more than just a product release. It’s a strategic move in the battle for AI chip dominance. With this initiative, SoftBank is positioning itself as a key player in the AI revolution.

The Financial Commitment

The development of AI chips is a costly affair. The initial development costs could reach “hundreds of billions of yen”. But SoftBank is ready to bear these costs. Once a mass-production system is set up, Arm’s AI chip business could be “spun off and placed under SoftBank”.

The Future of AI

The launch of AI chips by Arm is just the beginning. SoftBank is betting big on AI and reportedly plans to invest $960 million by next year to boost its computing facilities for generative AI. This investment signifies SoftBank’s commitment to leading the AI revolution.

The Global Expansion

SoftBank’s vision for AI doesn’t stop at Japan. They’re planning to build AI data centers, powered by homegrown chips, across the U.S., Europe, Asia, and the Middle East as soon as 2026.

The Earnings Report

SoftBank is set to report its earnings for the fiscal year ended March 31 on Monday. This report will provide more insights into SoftBank’s financial health and its commitment to AI.

The Takeaway

The launch of AI chips by Arm is a game-changer. It signifies a new era in the tech industry, where AI is not just a concept but a reality. With SoftBank at the helm, the future of AI looks promising indeed.