UK semiconductor company ARM, majority owned by SoftBank Group, is set to launch its own AI chips by next year, as the AI chip race continues to heat up.

The UK-based chip maker will develop a prototype by Spring 2025 in a new AI chip factory, according to a Nikkei Asia report. Mass production of Arm’s AI chips is set to begin by Autumn 2025.

Japanese multinational holding company SoftBank, which owns 90% of Arm, is reportedly in talks with Taiwan’s TSMC and other contractors. 

Arm creates the fundamental architecture on which the chips are built, the company then sells licenses to chip makers. According to the company, almost all of the world’s leading smartphones are powered with chips using its architecture. 

In April, it was reported that SoftBank Group will invest $960m by 2025 to create state-of-the-art GenAI.

SoftBank‘s computing network will reportedly be the most powerful in Japan once the investment is completed, as the company looks to create powerful specialised Japanese GenAI. 

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The graphics processing units used to develop Softbank’s GenAI technology will be bought from NVIDIA, the largest chip designer in the US.

In 2023, SoftBank invested $120m into building its computing infrastructure. The added $960m will be spent, in addition, throughout 2024 and 2025.