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geeky NEWS - $64 Billion Gamble: Softbank Arm Plan to Launch AI Chip in 2025

May 12, 2024 - geekynews.org
SoftBank Group subsidiary Arm has announced plans to develop AI chips, with the first products expected to launch in 2025. This is part of SoftBank Group CEO Masayoshi Son's $64 billion investment strategy to transform the company into an AI powerhouse. The plan includes investments in data centers, robots, and power generation, with AI chips as the cornerstone. SoftBank aims to leverage its existing B2C base in telecommunications, e-commerce, and payment systems to emerge as a B2B powerhouse, capitalizing on ARM's global reach in edge computing.

To support the adoption of its AI chips, SoftBank plans to construct data centers equipped with homegrown chips in the U.S., Europe, Asia, and the Middle East as early as 2026. The company is also exploring power generation options, including wind, solar, and fusion technology. In addition, SoftBank is establishing a robotics joint venture with Alat, a unit of Saudi Arabia's sovereign wealth fund, and actively pursuing mergers and acquisitions to bolster its AI capabilities. The company's AI chip venture could position it at the forefront of the AI era, shaping the future of industries worldwide.

Key takeaways:

  • SoftBank Group subsidiary Arm has announced its entry into the development of AI chips, with plans to launch its first products in 2025 as part of a $64 billion investment strategy to transform the company into an AI powerhouse.
  • SoftBank's ambitious plan includes investments in data centers, robots, and even power generation, with AI chips serving as the cornerstone of this transformative endeavor.
  • SoftBank plans to construct data centers equipped with homegrown chips in the U.S., Europe, Asia, and the Middle East as early as 2026 and will also venture into power generation, exploring wind, solar, and next-generation fusion technology.
  • SoftBank and Alat, a company backed by $100 billion Saudi Arabia's Public Investment Fund (PIF), will create an automated manufacturing hub to build next-generation industrial robots, aiming to transform the manufacturing industry in Saudi Arabia and beyond.
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