Arm was revealed to mass-produce AI chips in 2025 and received support from SoftBank, the company’s latest response

Arm will pay initial capital that could total hundreds of billions of yen. SoftBank is also expected to contribute. The company holds about 90% of Arm\’s shares.
SoftBank Chairman Masayoshi Son previously stated that he planned to increase investment in the field of generative AI.
As competition for artificial intelligence chips escalates, more and more technology companies are beginning to develop AI chips.
Recently, it was reported that Arm has established an AI chip department. The goal is to achieve mass production in 2025.
Boosted by the news, Arm surged more than 5% before the U.S. stock market opened on May 13.
Since this year, Arm’s stock price has increased by nearly 45%.
On May 13, a reporter from China Business News asked Arm for confirmation. The other party said: Arm does not comment on any rumors or speculation.
The latest rumors of Arm entering the field of AI chips come at a time when technology companies are increasing investment in AI chips.
Last week, Apple launched the M4 self-developed chip. It used AI chips for the iPad for the first time.
In addition, technology giants including Google, Amazon, Meta, and Microsoft are also increasing investment in the research and development of AI chips in order to get rid of their dependence on the chip giant Nvidia.
Boosted by the demand for computing chips spurred by generative artificial intelligence, Arm\’s stock price has continued to rise this year. However, the company\’s stock price has corrected recently. The stock price fell 13% in the past month. The market value still exceeds 113 billion US dollars.
It is reported that Arm will pay initial capital that may total hundreds of billions of yen. SoftBank is also expected to contribute. The company holds about 90% of Arm\’s shares.
SoftBank Chairman Masayoshi Son previously stated that he planned to increase investment in the field of generative AI.
SoftBank announced its latest financial report on Monday, showing that its Vision Fund achieved its first annual profit since 2021, with a profit of US$4.6 billion in the fiscal year ending in March this year.
SoftBank Group has achieved profitability for two consecutive quarters.
SoftBank Chief Financial Officer Yoshimitsu Goto said at the last quarter’s earnings conference that SoftBank has shifted from the Alibaba investment portfolio to an artificial intelligence-centered investment portfolio.
SoftBank was also recently revealed to be negotiating to acquire British artificial intelligence chip startup Graphcore.
Graphcore declined to comment.
Arm has been expanding into the data center market recently.
At Arm’s earnings conference last week, Arm CEO Rene Haas said: Arm is a platform company. We believe that the Arm ecosystem will occupy a considerable market share in the next two to three years.
Arm is a chip architecture design company. It licenses the chip architecture it builds to chip companies such as Qualcomm and Nvidia and collects royalties.
The company claims that 99% of high-end smartphones use Arm technology.
In addition, Arm CPU is also used in Nvidia’s latest Grace Blackwell data center chip.
At the same time, in addition to smartphones, Arm\’s business has also expanded to data centers, automobiles, AIPC and other fields in recent years.
When Haas talked about the opportunities brought by generative AI at the financial report conference, he said: Whether it is from the cloud, from GPT to Llama, all AI workloads rely on and run on Arm. This demand continues to increase.
He also said that it took Arm 20 years to reach US$1 billion in revenue; it only took 10 years to grow from US$1 billion to US$2 billion; it only took two years to grow from US$2 billion to US$3 billion. .
He predicts that Arm’s revenue will be close to US$4 billion this year.
In the quarter ending in March this year, Arm\’s revenue increased 47% to US$928 million, which was better than analysts\’ expectations. However, Arm expects full-year revenue to be between US$3.8 billion and US$4.1 billion, slightly lower than market expectations. This has also raised concerns about the outlook for its share price.
According to LSEG data, Arm\’s stock price recently traded at a forward price-to-earnings ratio of nearly 70 times. In comparison, Nvidia\’s forward price-to-earnings ratio was about 35 times.