British chip designer Arm Holdings (NASDAQ:ARM) explored snapping up semiconductor intellectual property supplier Alphawave.

That is, until discussions collapsed.

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The technology gained traction by enabling chatbots and other applications to operate smoothly by simultaneously stringing thousands of chips together.

Arm’s chips have gained traction among cloud computing companies as the electricity of AI data centers has surged over the years. Arm expects its data center central processing unit market share to reach 50% by the end of 2025, up from around 15% in 2024.

Both Arm and Qualcomm supply companies with data center CPUs.

Reportedly, Arm planned to boost prices by up to 300% and has discussed manufacturing its chips. It aims to increase annual smartphone revenue by ~$1 billion over the next ten years.

Price Action: ARM stock is down 0.13% at $106.84 at last check Wednesday.

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