On October 14, Arm Holdings (ARM) saw its shares rise over 2.5% following reports of a collaboration between OpenAI and SoftBank’s chip unit, along with Broadcom (AVGO). This partnership aims to develop a new central processing unit (CPU) tailored for artificial intelligence (AI) servers. The uptick followed a substantial 11% surge in Arm shares the previous day, spurred by initial news of the collaboration. The anticipated CPU will enhance OpenAI’s proprietary AI accelerator, co-developed with Broadcom. Arm is expected to play a vital role in architecting the processor, which may work in conjunction with AI chips from Nvidia and AMD, supporting OpenAI’s growing infrastructure. The announcement follows OpenAI’s partnership with Broadcom to create 10 gigawatts of custom AI accelerators, with the financial details undisclosed. Additionally, SoftBank’s significant stake in Arm is reportedly financing OpenAI’s data center expansion through margin loans backed by Arm shares.
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