Arm's Upcoming AI Chips Poised to Revolutionize the IT Industry

The designer of computer chips, Arm Holdings Plc, is said to have decided to enter AI (Artificial Intelligence) chip production. Their first product is scheduled to be launched next year.

The reason that Arm is working on its own AI chips is expected to be part of the broad strategy to develop all the group’s businesses into the AI sprawl. Even after the first public offering in September, SoftBank still has about 90% of the company.

According to Nikkei Asia, Arm has established an AI chip unit in response to the upcoming technology in the Tech industry. The prototype is scheduled for early spring 2025. Multiple foundry companies, including Sam Cat and TSMC, are scheduling mass production for the second half of the year.

The ¥100 billion (US$642 million) that Arm will reportedly shoulder for the initial development costs is just the beginning. SoftBank will not only subscribe to shares or capital but also for direct financial assistance. The Nikkei resources claim that through the mass production of the AI chip, the IE chip-related business can be detached and managed specifically at SoftBank.

Arm already provides circuit architecture for the processors used in smartphones and Graphic processor units. Still, the move to design and then subcontract AI chips will be the first step for the company. At this point, Arm is almost exclusively profit-driven from the royalties they receive whenever someone makes a chip using the design from them. Finally, if its concept has been granted the green light, Arm would battle those icons.

This is what makes M. Son, Chief Economic Advisor at Softbank and the driving force behind that vision, who is known for that. The end of the saga is to showcase an "AI revolution" regardless of those who come to data centers and robots. He believes that the future will be amazing when AI, semiconductor, and robotics technologies are merged, which will lead to innovations in many industries.

SoftBank is envisioned as having the data centers located in the US, Europe, Asia, and the Middle East ready for use by 2026 while leveraging the recently acquired (Arm home-grown chips). As for Son, a perfectionist-minded person, he focuses on the way going upward with SoftBank involving windmills and solar energy farms, and then he awaits the clean fusion technology for the data centers in the future.

The plans are indeed ambitious, but they are achievable; the only question is whether Arm will make its designs available to its existing customers or how those customers will react to Arm entering the AI chip market. Along with unique "AI chips", SoftBank will be smoking out competition from players like AWSI and Microsoft, with those players having processed and delivered their processors using arm-logged circuit architecture that SoftBank had earlier licensed.