Arm Holdings plans to launch AI chips in 2025

Arm will pay for initial development costs, which may go up hundreds of billions of yen, with SoftBank also contributing, the report said.

Once a mass-production system is established, the AI chip business could be spun off and placed under SoftBank, the newspaper said, adding that SoftBank is already negotiating with Taiwan Semiconductor Manufacturing Corp and others over manufacturing, looking to secure production capacity.

Arm declined to comment, while SoftBank and TSMC did not immediately respond to requests for comment.

The UK chip designer, which licenses its chip designs and earns funds through royalties, has been expanding into the data center market where operators are looking to build their own chips to power new AI models and reduce their reliance on dominant supplier Nvidia.