SoftBank's AI chip plans ran into hurdle with Intel, focus shifted to TSMC
Date
8/18/2024 5:56:16 AM
(MENAFN) SoftBank’s ambitious plan to develop an artificial intelligence chip to rival Nvidia faced a setback as its talks with Intel Corp. broke down. The collaboration, which aimed to combine SoftBank’s Arm chip designs with the production capabilities of Graphcore, recently acquired by SoftBank, fell through after Intel failed to meet the requirements set by the Japanese conglomerate. These negotiations were part of SoftBank CEO Masayoshi Son’s broader strategy to invest billions into creating a competitive AI chip market, involving not only chip production but also software development and data center operations.
Following the collapse of discussions with Intel, which also coincided with Intel's announcement of significant cost-cutting measures including layoffs, SoftBank has shifted its focus to potential partnerships with TSMC, the leading global chipmaker. Successful collaboration with Intel would have allowed SoftBank to leverage funding from the Biden administration’s Chips Act, designed to boost U.S. semiconductor production. Despite the setback, SoftBank remains committed to its vision of establishing a strong presence in the AI chip industry and is exploring new avenues to secure support from major technology companies.
In response to the failed Intel partnership, Masayoshi Son is actively seeking support from tech giants like Google and Meta. The plan includes potential funding through pre-orders from these companies to finance the substantial investment required to start chip production. While Meta has declined to comment and Google has not responded, SoftBank’s efforts to engage with leading tech firms underscore its determination to overcome the current challenges and push forward with its AI chip initiative.
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