The media published information according to which Arm, specializing in the development of chips, plans to become a manufacturer of microcircuits as part of its own transformation, which means broader prospects, including in the context of financial performance.
Currently, the mentioned brand designs chips and licenses those designs for technology giants such as Apple and Nvidia. On Thursday, February 13, the media published information according to which Arm plans to introduce its first made in-house microcircuit in the summer of the current year.
Journalists claim that Meta became one of the first customers of the new chip from the mentioned company which is owned by SoftBank. Arm did not respond to a media request for comment on the release of information about plans to launch making microcircuits. Meta in this case also opted for the tactic of silence.
It is worth noting that the demand for chips has increased in recent years. The corresponding tendency is largely related to the so-called artificial intelligence boom. Chips are necessary for training and ensuring the process of subsequent functioning of machine intelligence systems. If Arm does launch the production process of its own microcircuits, it will face fierce competition, primarily from Nvidia. The mentioned company, which is one of the main beneficiaries of the artificial intelligence boom, has an 80% share in the AI chip market. Against the background of the mentioned circumstance, which is an advantage in the era of machine intelligence that has actually begun, Nvidia’s market capitalization in 2014 exceeded a kind of historical figure of $3 trillion.
By developing and manufacturing chips, Arm can become a competitor to its current customers.
SoftBank founder Masayoshi Son is currently aiming to build an infrastructure network for artificial intelligence. It is worth noting that this business giant as a whole has made a significant bet on AI. Artificial intelligence is an advanced technology of modernity. AI has already demonstrated significant abilities related to processing huge amounts of information, including as part of an analytical approach to performing such cognitive operations, and to generating original content. Some experts predict that artificial intelligence will surpass the human mind in the course of its technological evolution. Masayoshi Son is one of the proponents of a corresponding point of view on the prospects for the development of machine intelligence. In his plan for building an infrastructure network for artificial intelligence, Arm is at the center.
Arm is also a key technology partner of Stargate, the AI infrastructure initiative led by SoftBank and OpenAI.
According to information published by the media, Arm’s new chip will be a central processing unit for use in data centers. Also, this chip is expected to be customizable for customers and to be manufactured by a company to which the mentioned firm will outsource the work.
It’s worth noting that rumors that Arm plans to become a maker of microcircuits have already been circulating. In January, media representatives asked a corresponding question to the company’s chief commercial officer Will Abbey, but no comments were received. Back in May, journalists published information that Arm was planning to develop its own artificial intelligence chip. Also at that time, the media reported that the prototype of this product would be ready by the spring of 2025.
In January, Will Abbey, during a conversation with media representatives, stated that Arm sees its power-efficient design as a competitive advantage, especially since artificial intelligence is a power guzzler. The company’s central processing unit architecture is simpler, customizable, and energy efficient.
As we have reported earlier, SoftBank and Arm Weigh Acquiring Ampere Computing.
