Arm plans to develop an AI chip division, will have AI chips released in 2025

Arm is developing its own artificial intelligence (AI) chips, with the first AI chips made by the company expected to launch in 2025.

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The UK-based company will spool up an AI chip division that will deliver a prototype AI chip by spring 2025 according to a report from Reuters. The mass production of Arm's new AI chip will be handled by contract manufacturers -- TSMC -- and is expected to start in autumn 2025.

Arm Holdings is a SoftBank Group subsidiary -- SoftBank owns a 90% share in Arm -- with SoftBank CEO Masayoshi Son preparing a huge $64 billion strategy to transform SoftBank into a powerhouse AI company. Negotiations are reportedly already happening with TSMC and others to secure production capacity.

Son sees the big move into AI as a catalyst for the expansion into data centers, robotics, and power generation, integrating AI, semiconductor, and robotics technologies to drive innovation across multiple sectors. Son is wholly committed to AI, as he thinks AI can pass human intelligence and solve complex problems, after flying around the world to secure partnerships and technologies that meet his grand vision of AI.

SoftBank is also preparing massive investments into data centers that would be powered by its own AI chips and renewable energy sources, which will include wind and solar, with the potential to expand into using fusion energy.