Arm shares rise on report that Meta will buy its first chip
Arm shares rose 5% after a Thursday report that it was developing its own chip and that it had secured Meta as one of its first customers
Arm shares rose 6% after a Thursday report that it was developing its own chip and that it had secured Meta as one of its first customers.
The Financial Times report indicates that Arm is developing a new product that will compete with many of its customers. The semiconductor company currently licenses its technology, called an instruction set, as well as more complicated core designs, to its customers so they can build their own chips.
Arm has historically been known as the "Switzerland" of chip technology firms, a reputation it received by dealing neutrally with competing chipmakers. It counts Apple, Google, Nvidia, Amazon, Microsoft, Qualcomm and Intel as customers.
Meta is spending as much as $65 billion this year on capital expenditures for artificial intelligence development. While much of its spending is on Nvidia-based systems, Meta has also purchased other chips, including AMD's competitor, and said it is developing its own chip internally.