🖼 💡 Arm had sought to acquire Alphawave to obtain key AI chip technologies, but has abandoned the deal. According to Reuters, citing sources, Arm, a chip technology company under the SoftBank Group, recently sought to acquire a well - known British semiconductor...

💡 Arm had negotiated to acquire Alphawave for key AI chip technology, but has abandoned the deal

According to Reuters, citing sources, Arm, a chip technology company owned by SoftBank Group, recently sought to acquire Alphawave, a British semiconductor intellectual property provider. The move aimed to obtain Alphawave's advanced "Serializer/Deserializer" (SerDes) technology, which is crucial for high-speed data transfer between chips and is a key part of Arm's plan to build its own artificial intelligence (AI) processors.

Alphawave, with a market capitalization of approximately £707 million (about $913 million), has hired an investment bank to explore a potential sale after receiving interest from Arm and other potential acquirers. However, sources revealed that after preliminary discussions, Arm has decided to abandon the acquisition of Alphawave.

SerDes technology is crucial for AI applications (such as ChatGPT) that require a large number of chips to work together. Arm currently lacks the advanced SerDes technology that Alphawave possesses, and this technology is regarded as a major advantage for competitors like Broadcom in the custom AI chip market. This potential acquisition also reflects that Arm is exploring a strategic shift beyond its traditional IP licensing model, potentially venturing into designing and selling its own chips to expand its revenue.

(Reuters)

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