SoftBank Invests $20 Billion in Intel to Boost Arm's AI Chip Development

SoftBank Group's recent 20 billion dollar investment in Intel has been noted as a strategic move to support Arm's independent chip development and potentially provide additional wafer fabrication capacity. This investment is seen as a significant step in bolstering Arm's research and development efforts, particularly in the realm of AI chip technology.

Analysts have highlighted that this investment not only supports Arm's development but also offers a viable alternative for wafer fabrication, which is crucial for Arm's AI chip ambitions. The investment positions SoftBank as the sixth-largest shareholder in Intel, holding approximately 2% of the company's shares. This move comes at a time when Arm is aggressively expanding its AI chip development.

The company has recently hired a former head of Amazon's AI chip business, who led the development of Amazon's Trainium and Inferentia chips. This hire is a clear indication of Arm's commitment to developing its own comprehensive AI chip solutions. Arm's CEO had previously mentioned in July that the company is increasing its research and development investments and exploring the feasibility of manufacturing its own chips.

In addition to this hire, Arm has also brought on board a former executive from Hewlett-Packard Enterprise with extensive experience in large-scale system design, and a chip engineer who has worked at both Intel and Qualcomm. These strategic hires underscore Arm's determination to accelerate its AI chip development and potentially challenge established players in the market.

SoftBank's investment in Intel is part of a broader strategy to expand its presence in the AI industry. Over the past year, the conglomerate has acquired a UK-based AI chip manufacturer, and a silicon design company specializing in high-performance, energy-efficient AI computing based on the Arm platform. SoftBank is also a significant investor in OpenAI, further solidifying its position in the AI sector.

The collaboration between Intel and Arm, announced in 2023, aims to help chip designers leverage Intel's 18A process technology to create low-power system-level chips. Initially focused on mobile devices, this partnership is set to expand into automotive, IoT, and data center applications. This strategic alliance, coupled with SoftBank's investment, positions Arm to accelerate its AI chip development and potentially challenge established players in the market.