Arm Holdings, a SoftBank Group subsidiary, is entering the AI chip market with a product launch planned for 2025.

A new division within Arm will focus on AI chip development, expecting to have a prototype by spring 2025 and start mass production in fall 2025.

SoftBank will likely provide financial support for Arm's AI chip venture, in addition to Arm's own development funds.

There's a possibility that Arm may spin off its AI chip business under SoftBank's ownership.

Manufacturing of the AI chips will be outsourced to contract manufacturers.

Arm's move is a strategic response to data center operators creating their own AI chips, challenging Nvidia's market dominance.

SoftBank's current financial position allows for new investment opportunities, leveraging its liquidity and potential monetization of its stake in Arm.