Javier Pastor
Senior WriterComputer scientist turned tech journalist. I've written about almost everything related to technology, but I specialize in hardware, operating systems and cryptocurrencies. I like writing about tech so much that I do it both for Xataka and Incognitosis, my personal blog.
Companies are hugely investing in data centers–possibly too much. For example, ARM has traditionally focused on designing chips that others licensed and manufactured. However, the British company is now looking to take its business to the next level. AI is the main reason driving this change.
ARM’s first proprietary chip. According to the Financial Times, ARM plans to unveil its first in-house chip in the summer. Until now, the company has refrained from competing in a field dominated by Intel, AMD, Nvidia, Qualcomm, and Apple. However, it’s now ready to join the competition.
Data centers are in the spotlight. SoftBank, which holds a majority stake in ARM, has ambitious plans for the data center sector. The company has partnered with OpenAI and others on the massive Stargate Project, which aims to invest $500 billion in U.S. data centers. ARM is expected to contribute to this project by providing its own chips to power the servers in these facilities.
Meta: ARM’s first major customer. The upcoming chip will reportedly be designed as a CPU for servers and will allow companies like Meta to customize it. The Financial Times reports that the tech giant is already ARM’s first major customer in this venture. Sources obtained by the outlet suggest that TSMC may handle the production of these chips.
Upcoming acquisition of Ampere. Recent discussions have emerged regarding advanced negotiations for SoftBank to acquire Ampere. The company specializes in ARM architecture for multicore chips aimed at data centers.
Threatening Intel and AMD’s dominance. Intel and AMD have historically dominated the server and data center markets with their x86 architecture. However, ARM-based chips are becoming an increasingly appealing alternative. The expected introduction of ARM’s own chips could further enhance their market presence.
Challenges for Qualcomm. Qualcomm’s system-on-chips are widely used in the smartphone industry. However, the company has also been developing chips for server use. Qualcomm and ARM recently resolved a dispute that had been going on for months. It remains to be seen how ARM’s proprietary chip project will influence Qualcomm’s plans, especially since the company was reportedly negotiating with Meta to supply chips for its data centers.
Image | ARM
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