SoftBank Group's subsidiary Arm is making a significant move into developing artificial intelligence (AI) chips, with plans to launch its first products in 2025, Nikkei Asia reported.

This decision aligns with SoftBank Group CEO Masayoshi Son's ambitious vision to transform the conglomerate into a leading force in the AI industry, with a substantial investment of 10 trillion yen ($64 billion).

Arm's Expansion into AI Ecosystem

Arm, a UK-based chip designer with SoftBank holding a 90% stake, will establish a dedicated AI chip division. 

The company hopes to have a prototype ready by spring 2025, with mass production starting that same year in the fall.

This development highlights SoftBank's commitment to capitalizing on the surging demand for AI-driven technologies across various sectors.

Under Son's strategic roadmap, SoftBank plans to venture into AI chip manufacturing and expand its presence in data centers, robotics, and power generation. 

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Softbank Charting a Course Towards AI Infrastructure Dominance

The company intends to build AI data centers powered by its proprietary chips in key global regions by 2026, signaling a broader strategic shift towards AI-centric infrastructure development.

As per Nikkei Asia, SoftBank is already in discussions with prominent contract manufacturers, including Taiwan Semiconductor Manufacturing Corp. (TSMC), to ensure efficient production capacity for its AI chips. 

According to Nikkei Asia, the market for AI chips is poised for significant expansion, projected to exceed $100 billion by 2029. 

SoftBank's strategic positioning and financial prowess, evident from its forthcoming earnings report showcasing a substantial improvement in the bottom line, signal a decisive push towards becoming a pivotal player in the evolving AI ecosystem.

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