Arm Holdings Is Going to Introduce AI Chips in 2025 to Take on Nvidia and Apple

(Reuters) -Nikkei Asia said on Sunday that Arm Holdings, a division of SoftBank Group, intends to create artificial intelligence (AI) processors, with the goal of releasing the first products in 2025.

According to the source, UK-based Arm plans to establish an AI chip branch and strive to produce a prototype by spring 2025. Contract manufacturers will handle mass manufacturing, which is anticipated to begin in the fall of 2025, according to Nikkei Asia.

SoftBank would also contribute, while Arm will cover the first development expenditures, which might reach hundreds of billions of yen, according to the newspaper.

According to the publication, SoftBank may spin out and take over the AI chip company once a mass-production infrastructure is put in place. SoftBank is also reportedly in talks to secure production capacity with companies like Taiwan Semiconductor Manufacturing Corp (TSMC) and others.

While TSMC did not immediately reply to requests for comment, Arm and SoftBank refused to comment.

The British chip manufacturer has been growing into the data center sector, where operators are trying to create their own processors to power new AI models and lessen their dependence on main supplier, Nvidia. The company licenses its chip designs and makes money via royalties.

When SoftBank releases its profits on Monday, it is anticipated that they will go back into the negative. Since the firm has plenty of liquidity and may profit from its sizable ownership in Arm—whose share price almost quadrupled in February due to optimism around AI—investors are anxiously anticipating any fresh expansion investment announcements.