SoftBank talks with Intel about developing artificial intelligence chip

According to the Financial Times, SoftBank and Intel have been in talks to develop an artificial intelligence chip in recent months. The talks, which have since fallen apart, are believed to be part of SoftBank’s multibillion-dollar push to challenge Nvidia in the AI ​​accelerator market.

SoftBank reportedly hopes to not only produce AI chips, but also develop the software to power them. It also plans to play a role in supplying electricity to customers’ data centres. At this point, it should be reminded that SoftBank is also the majority shareholder of Arm, a provider of central processing unit designs.

Arm’s latest CPU plan includes optimizations that allow it to run AI models significantly faster than previous silicon. However, the company has not yet produced a special artificial intelligence processor with capabilities compatible with Nvidia’s graphics processing units.

SoftBank expanded its presence in the chip market with the acquisition of venture-backed semiconductor startup Graphcore last month. This company has developed an AI chip called IPU Bow, which it positions as a direct alternative to Nvidia GPUs. SoftBank’s plan to enter the AI ​​accelerator market involves combining Arm processor designs with Graphcore’s expertise in putting a chip into production, according to the Financial Times.

It was reported that SoftBank was considering partnering with Intel to produce artificial intelligence chips. The talks are believed to have failed because the chipmaker was unable to meet the project’s volume and speed requirements. SoftBank has also been in talks with Taiwan Semiconductor Manufacturing about producing its chips. However, the companies are reportedly yet to sign a supply agreement due to a delay that could be linked to limited capacity at TMSC’s factories.