SoftBank’s discussions with Intel about creating a next-generation artificial intelligence chip have recently come to an end, according to sources familiar with the situation, as reported by the Financial Times. The initiative was designed to leverage SoftBank’s Arm Holdings chip designs and the production capabilities of British AI chipmaker Graphcore, a recent addition to SoftBank’s portfolio.
The breakdown in negotiations occurred as SoftBank concluded that Intel was unable to meet its stringent requirements for both volume and speed. This setback preceded Intel’s announcement of significant cost reductions. Despite this, there is potential for renewed talks, as only a limited number of chipmakers have the capability to produce advanced AI processors.
Currently, SoftBank is shifting its focus to discussions with Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading contract chip manufacturer. However, no agreement has been finalized yet, partly because TSMC is reportedly facing difficulties in fulfilling the demands of its existing clientele.
Neither Intel nor SoftBank has provided comments on the report. SoftBank CEO Masayoshi Son, who is committed to investing billions to maintain a competitive edge in the AI sector, remains determined to proceed with the AI chip project. Nonetheless, securing adequate production capacity continues to be a significant challenge.
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