Arm Expands Chip Ambitions, Competes Against Customers
Arm, renowned for providing chip designs to companies like Apple and Nvidia, is reportedly expanding its reach by recruiting executives from its clients and vying for their business.
The company's move to sell its own chips could disrupt the industry, where Arm has traditionally been seen as a neutral player. Arm's efforts to hire executives from customers began in November, despite CEO Rene Haas's previous denial of chip-making ambitions.
Arm has secured at least some of Meta Platform's data center CPU business, competing with Qualcomm, one of its significant customers. Qualcomm and Meta's ongoing discussions leave the outcome uncertain.
Arm is also exploring competition with Nvidia. J.P. Morgan's Harlan Sur reveals that Broadcom has secured a contract to develop an AI chip for Arm and SoftBank Group's data center initiative, potentially generating $30 billion in revenue for Broadcom.