SoftBank subsidiary to develop semiconductor chips, reports profits after AI shift

As an experienced technology analyst, I believe Arm’s decision to develop its own AI chips is a strategic move that could potentially disrupt the market and reduce its dependence on Nvidia. With SoftBank’s backing and resources, Arm has the opportunity to become a major player in the AI chip industry. The timing of this announcement is significant as there is growing interest and investment in AI technology, with companies like Samsung and OpenAI also making moves in this space.

Arm, a processor design company owned by SoftBank, has unveiled intentions to create their own custom artificial intelligence (AI) processors, spurred on by lucrative gains in the AI sector.

As a crypto investor following the tech industry closely, I’ve come across an intriguing piece of news from Nikkei Asia on May 13. Arm, the renowned tech company, is establishing a new division dedicated to creating AI chips. According to the report, the first prototype of this technology is predicted to be unveiled by spring 2025, with mass production slated for autumn that same year.

As an analyst, I have uncovered that Arm will shoulder the upfront expenses for the development of their new AI chip business, approximating around hundreds of billions of yen. SoftBank, being the 90% proprietor, will also contribute to this endeavor. Once production is well underway, there exists a potential for SoftBank to independently manage and operate this business venture.

As a analyst, I can share that according to recent reports, I’m finding that SoftBank is currently engaged in negotiations with companies like Taiwan Semiconductor Manufacturing Corp, and possibly others, to ensure they have sufficient manufacturing capacity for mass producing the required chips.

The company claims that nearly all smartphones and tablets integrate the technology supplied by their arm, which dominates over 90% of the processor architecture market for mobile devices.

Arm not only provides architecture to Nvidia, a major player in the AI chip industry, but also works on creating its own chips for advanced AI models to decrease its dependence on Nvidia.

As a crypto investor looking back at SoftBank’s 2024 financial year, I noticed that the tech giant reported a profitable final quarter, marking a shift in their business strategy towards artificial intelligence (AI). The significant contribution of Arm to their future plans was evident in their outlook for the upcoming year.

At a press conference held in Tokyo, SoftBank’s CFO, Yoshimitsu Goto, shared that the burgeoning curiosity and progression in the field of Artificial Intelligence (AI) are major priorities for their organization.

“Arm is at the core of SoftBank Group’s AI shift which will create a new ecosystem, along with the various assets we’ve held for a long time that are using AI, centered on the Vision Fund.”

As a researcher studying market trends, I’ve observed that my company, Arm, experienced a significant surge of 30% in its stock price last February. This growth can be attributed to our ambitious plans in the field of artificial intelligence (AI). Like many other technology companies, we’re striving to develop our own AI chips in-house and aim to reduce our dependency on external suppliers such as Nvidia.

On April 15, Samsung announced that it had obtained a grant worth $6.4 billion to enlarge its semiconductor chip manufacturing facility in Texas. The company plans to invest approximately $45 billion in total by the end of the decade.

As a researcher, I’ve come across some intriguing news in the field of artificial intelligence. In February, OpenAI, the innovative company behind the popular AI chatbot ChatGPT, announced their plans to raise substantial investments, estimated in the trillions of dollars, from global investors. Their ultimate goal is to commence manufacturing their own advanced chips.

2024-05-13 15:45

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