SoftBank climbs 1.89% on reports of subsidiary Arm Holdings' plan for AI-powered chips by 2025

SoftBank Group's stock rose by 1.89% ahead of its earnings report, following news that its subsidiary, Arm Holdings, is planning to launch artificial intelligence (AI) powered chips by 2025. The UK-based company is reportedly setting up a dedicated division for the development of these chips, with the aim of unveiling its initial products by 2025. The development costs, expected to be in the hundreds of billions of yen, will be primarily covered by Arm Holdings, with SoftBank Group also expected to contribute.

Arm Holdings, known for its chip designs and royalty-based revenue, has been diversifying its portfolio by entering the data-centre market. The company's potential in the AI computing domain has significantly boosted its share price since its initial public offering last September, with its market value now exceeding $100 billion. The company is reportedly in talks with Taiwan Semiconductor Manufacturing Corp (TSMC) and other potential partners to secure production capacity for the new AI chips.

Key takeaways

SoftBank Group's subsidiary Arm Holdings is developing AI-powered chips, with a targeted launch in 2025.
Arm Holdings plans to have a prototype ready by spring 2025, with mass production beginning in the autumn of the same year.
The company is considering spinning off the AI chip business under the umbrella of SoftBank Group once the mass-production infrastructure is established.
Arm Holdings' expansion into the AI computing domain has significantly boosted its share price, with the company's market value now surpassing $100 billion.

SoftBank climbs 1.89% on reports of subsidiary Arm Holdings' plan for AI-powered chips by 2025 | Mint

Key takeaways

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