Arm Holdings, a leading technology company, is reportedly gearing up to launch AI chips by 2025, as reported by Nikkei Asia. The UK-based Arm plans to establish an AI chip division with the goal of unveiling the first products in 2025. It aims to have a prototype ready by spring 2025, followed by mass production in the autumn of the same year. To cover the extensive development costs, Arm will be investing alongside SoftBank, its parent company.
Once the production system is operational, there are talks of potentially spinning off the AI chip business to be overseen by SoftBank. Negotiations are already underway with prominent manufacturers like Taiwan Semiconductor Manufacturing Corp (TSMC) to secure production capacity. Arm has been making significant strides in the data-center market, catering to the increasing demand for custom chips to power AI applications and reduce reliance on traditional suppliers like Nvidia.
The heightened interest in Arm’s AI computing capabilities has seen a spike in its share price post the public offering, pegging its market value at over $100 billion. In contrast, SoftBank is projected to report a loss in the upcoming earnings call, prompting investors to anticipate potential growth opportunities. The liquidity advantage and the soaring value of SoftBank’s Arm holdings signify exciting prospects ahead, especially within the realm of AI technology.
