Softbank's Power Play: Arm Charges into AI Arena with Power-Packed Chips

  • Softbank Group Corp SFTBF SFTBY is betting on the artificial intelligence momentum to pique investor curiosity ahead of its much-anticipated initial public offering.
  • Arm technology enables many AI applications and will be fundamental to building the next wave of AI innovations, Bloomberg cites CEO Rene Haas at the Computex trade show in Taiwan on Monday.
  • Arm launched two new products to boost smartphone performance, including the Arm Cortex-X4, its fourth-generation Cortex-X core, and the Arm Immortalis-G720, based on its fifth-generation GPU architecture.
  • The British chip designer touted the Cortex-X4 as the fastest CPU it is made so far, with a focus on enabling artificial intelligence and machine learning-based apps.
  • Arm also launched a new platform called for mobile computing called Arm Total Compute Solutions 2023 (TCS23).
  • It also maintained its partnership with Taiwan Semiconductor Manufacturing Company Ltd TSM.
  • Arm is chasing a lofty valuation taking a cue from NVIDIA Corp NVDA, which is on the verge of becoming the first trillion-dollar chipmaker thanks to the AI wave.
  • Haas said that on-device and small-scale AI processors would all run Arm technology, citing examples from Inc's AMZN Alexa voice assistant and Alphabet Inc's GOOG GOOGL Google Pixel phones to smart traffic light management and robotic beehive maintenance.
  • He quoted Nvidia's Grace Hopper's next-generation architecture for accelerating AI as another example of Arm technology in the AI supply chain.
  • Jefferies analyst Atul Goyal expected Softbank to play the AI card to tap investor interest for Arm, despite most of its current business being based on designing and licensing semiconductor IP, particularly for mobile devices.
  • Price Action: SFTBF shares closed higher by 1.94% at $37.39 on Friday.
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