Arm is one of the most integral players in the semiconductor space. Its technology is in 99% of the world's smartphones. Arm's hotly-anticipated IPO shone a light on its strengths, the push into A.I. and its challenges ahead. But it also thrust chips back into the geopolitical spotlight.

https://art19.com/shows/beyond-the-valley/episodes/281ac85f-bc1b-47bd-9e1c-21a5330204f7/
#Podcasts We ❤️

The $54 billion Arm IPO and the future of microchips

Podcasts We ❤️

Arm is one of the most integral players in the semiconductor space. Its technology is in 99% of the world's smartphones. Arm's hotly-anticipated IPO shone a light on its strengths, the push into A.I. and its challenges ahead. But it also thrust chips back into the geopolitical spotlight.  https://art19.com/shows/beyond-the-valley/episodes/281ac85f-bc1b-47bd-9e1c-21a5330204f7/ #Podcasts We ❤️

Sam Mendoza

Arm Holdings is exploring an acquisition of Alphawave, which develops and licenses chip designs, to enhance its ability to design artificial intelligence chips, Reuters reported, citing three people familiar with the matter.

SoftBank-owned Arm licenses the build blocks for chip designs to prominent clients such as Apple, Qualcomm and Nvidia, which then design chips based on Arm’s intellectual property. Recently, Arm has started to design its own AI chips to boost profit margins and develop a new revenue source, even if that means competing with some of its own customers.

Arm lacks the critical technology necessary for improving AI performance across chips that are linked together, which the acquisition of Alphawave could address. Alphawave is known for technology that can significantly improve the speed of data transmission between chips, known as the serializer-deserializer. The technology is the cornerstone of the custom chip designs from Broadcom and Marvell Technology, which generate billions in revenue for them.

Alphawave operated a joint venture called WiseWave in China, but its joint-venture partner Wise Road Capital was placed on a U.S. blacklist last year due to national security concerns, which might complicate Arm’s acquisition efforts.

https://www.reuters.com/technology/arm-recently-sought-acquire-alphawave-ai-chip-tech-sources-say-2025-04-01/?utm_campaign=%5BREBRAND%5D+%5BTI-AM%5D+Th&utm_content=1095&utm_medium=email&utm_source=cio&utm_term=124

Arm Holdings is exploring an acquisition of Alphawave, which develops and licenses chip designs, to enhance its ability to design artificial intelligence chips, Reuters reported, citing three people familiar with the matter.  SoftBank-owned Arm licenses the build blocks for chip designs to prominent clients such as Apple, Qualcomm and Nvidia, which then design chips based on Arm’s intellectual property. Recently, Arm has started to design its own AI chips to boost profit margins and develop a new revenue source, even if that means competing with some of its own customers.  Arm lacks the critical technology necessary for improving AI performance across chips that are linked together, which the acquisition of Alphawave could address. Alphawave is known for technology that can significantly improve the speed of data transmission between chips, known as the serializer-deserializer. The technology is the cornerstone of the custom chip designs from Broadcom and Marvell Technology, which generate billions in revenue for them.  Alphawave operated a joint venture called WiseWave in China, but its joint-venture partner Wise Road Capital was placed on a U.S. blacklist last year due to national security concerns, which might complicate Arm’s acquisition efforts.  https://www.reuters.com/technology/arm-recently-sought-acquire-alphawave-ai-chip-tech-sources-say-2025-04-01/?utm_campaign=%5BREBRAND%5D+%5BTI-AM%5D+Th&utm_content=1095&utm_medium=email&utm_source=cio&utm_term=124

SoftBank-owned chip tech provider Arm Holdings recently sought to acquire UK-based Alphawave to secure a crucial technology for building its own artificial-intelligence processors, according to three sources familiar with the matter.

Exclusive: Arm recently sought to acquire Alphawave for AI chip tech, sources say

Bobby

The CEO of Arm, which licenses chip designs to Apple and Nvidia, says he sees room for Nvidia competitors.


https://www.theinformation.com/articles/why-arms-ceo-sees-room-for-nvidia-competitors?offer=rtsu-engagement-25&utm_campaign=RTSU%3A+Why+Arm%E2%80%99s+CEO&utm_content=7295&utm_medium=email&utm_source=cio&utm_term=4983&rc=gzsl71

The CEO of Arm, which licenses chip designs to Apple and Nvidia, says he sees room for Nvidia competitors.   https://www.theinformation.com/articles/why-arms-ceo-sees-room-for-nvidia-competitors?offer=rtsu-engagement-25&utm_campaign=RTSU%3A+Why+Arm%E2%80%99s+CEO&utm_content=7295&utm_medium=email&utm_source=cio&utm_term=4983&rc=gzsl71

Cloud and chip executives have predicted for two years that Nvidia’s dominance in artificial intelligence server chips would crater, but that hasn’t come to pass. Yet Rene Haas, CEO of Arm Holdings, whose chip designs power part of Nvidia’s systems as well as those of major competitors, feels ...

Why Arm’s CEO Sees Room for Nvidia Competitors

Nate

SoftBank-owned Arm has signed up Meta Platforms as a customer of a new server chip for cloud and artificial intelligence computing, the Financial Times reported. The chip wouldn’t compete directly with AI chips from Nvidia and AMD, but it would compete with chips made by customers like Amazon Web Services.

The Arm server chip will use technology from Ampere Computing, a chip startup led by former Intel President Renee James, according to the report. SoftBank began acquisition talks with Ampere last September and is close to completing the deal, according to other reports.

The chip is a departure for Arm, which licenses server chip designs to companies such as Amazon, Apple, and Qualcomm. It is also risky, as an Arm-developed server chip would put it in competition with those customers.

https://www.ft.com/content/95367b2b-2aa7-4a06-bdd3-0463c9bad008?utm_campaign=%5BREBRAND%5D+%5BTI-AM%5D+Th&utm_content=1095&utm_medium=email&utm_source=cio&utm_term=124

SoftBank-owned Arm has signed up Meta Platforms as a customer of a new server chip for cloud and artificial intelligence computing, the Financial Times reported. The chip wouldn’t compete directly with AI chips from Nvidia and AMD, but it would compete with chips made by customers like Amazon Web Services.  The Arm server chip will use technology from Ampere Computing, a chip startup led by former Intel President Renee James, according to the report. SoftBank began acquisition talks with Ampere last September and is close to completing the deal, according to other reports.  The chip is a departure for Arm, which licenses server chip designs to companies such as Amazon, Apple, and Qualcomm. It is also risky, as an Arm-developed server chip would put it in competition with those customers.  https://www.ft.com/content/95367b2b-2aa7-4a06-bdd3-0463c9bad008?utm_campaign=%5BREBRAND%5D+%5BTI-AM%5D+Th&utm_content=1095&utm_medium=email&utm_source=cio&utm_term=124

SoftBank-owned group secures Meta as one of its first customers for new initiative

Arm to launch its own chip in move that could upend semiconductor industry

After a two-year court battle, a federal jury largely ruled in favor of Qualcomm in an intellectual property dispute with Arm Holdings. Arm, which licenses its chip designs to companies such as Qualcomm and Apple, claimed that Qualcomm had improperly used intellectual property that Arm licensed to a startup, Nuvia, before Qualcomm acquired Nuvia in 2021.

The decision clears the way for Qualcomm to continue selling chips for personal computers that it had created using Nuvia’s technology without needing to renegotiate its licensing agreement with Arm. But the jury did not reach a unanimous verdict on Arm’s claim that Nuvia had breached its license with Arm.

The verdict largely resolves a long legal battle between Arm and one of its largest customers. Arm’s share price dropped by nearly 2% in after-hours trading following the decision, while Qualcomm shares traded up by roughly the same amount.

“The jury has vindicated Qualcomm’s right to innovate and affirmed that all the Qualcomm products at issue in the case are protected by Qualcomm’s contract with Arm,” a Qualcomm spokesperson said in an emailed statement.

A spokesperson for Arm said that the company was “disappointed that the jury was unable to reach consensus” on the claim involving Nuvia and intends to seek a retrial.

After a two-year court battle, a federal jury largely ruled in favor of Qualcomm in an intellectual property dispute with Arm Holdings. Arm, which licenses its chip designs to companies such as Qualcomm and Apple, claimed that Qualcomm had improperly used intellectual property that Arm licensed to a startup, Nuvia, before Qualcomm acquired Nuvia in 2021.  The decision clears the way for Qualcomm to continue selling chips for personal computers that it had created using Nuvia’s technology without needing to renegotiate its licensing agreement with Arm. But the jury did not reach a unanimous verdict on Arm’s claim that Nuvia had breached its license with Arm.  The verdict largely resolves a long legal battle between Arm and one of its largest customers. Arm’s share price dropped by nearly 2% in after-hours trading following the decision, while Qualcomm shares traded up by roughly the same amount.  “The jury has vindicated Qualcomm’s right to innovate and affirmed that all the Qualcomm products at issue in the case are protected by Qualcomm’s contract with Arm,” a Qualcomm spokesperson said in an emailed statement.  A spokesperson for Arm said that the company was “disappointed that the jury was unable to reach consensus” on the claim involving Nuvia and intends to seek a retrial.

Cyril

due a correction!  a valuation level higher than Nvidia’s, based on multiples of both revenue and profits doesn't make sense. Nvidia dominates the market for specialized chips used in AI whereas Arm has a more indirect AI business.


https://www.theinformation.com/articles/arm-stock-is-pricier-than-nvidias-it-shouldnt-be?offer=rtsu-engagement-24&utm_campaign=RTSU+-+True+value+AR&utm_content=4966&utm_medium=email&utm_source=cio&utm_term=3403&rc=gzsl71

Arm Holdings’ revenue growth slowed to just 5% in the September quarter, from 39% in the previous quarter, as a decline in licensing revenue was offset by higher royalty revenue.

due a correction!  a valuation level higher than Nvidia’s, based on multiples of both revenue and profits doesn't make sense. Nvidia dominates the market for specialized chips used in AI whereas Arm has a more indirect AI business.   https://www.theinformation.com/articles/arm-stock-is-pricier-than-nvidias-it-shouldnt-be?offer=rtsu-engagement-24&utm_campaign=RTSU+-+True+value+AR&utm_content=4966&utm_medium=email&utm_source=cio&utm_term=3403&rc=gzsl71

Sam Mendoza

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