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Arm Stock Gains 6 percent on AI Chips Launch Plan

Arm Holdings (NASDAQ:ARM), a subsidiary of SoftBank Group, saw its shares rise by more than 6% intra-ay today after announcing that it is planning to enter the AI chip market as part of CEO Masayoshi Son’s strategy to transform the conglomerate into a dominant force in artificial intelligence.
A report from Asia Nikkei indicates that Arm Holdings intends to create a new division specifically for AI chips, with goals to develop a prototype by spring 2025 and to begin mass production by fall 2025 through contract manufacturers. This move is a component of SoftBank’s larger plan to invest 10 trillion yen ($64 billion) in AI technologies.
Arm currently leads the smartphone processor architecture market, commanding over a 90% share. Owned predominantly by SoftBank, which holds a 90% stake, Arm will cover the initial development costs, expected to be in the hundreds of billions of yen. SoftBank will also provide financial support for this project. There is a possibility that the AI chip business could eventually be spun off into a separate company under SoftBank once it reaches the mass production stage.

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