Arm has initiated a strategy to recruit personnel from its client base and enter into competition for contracts, a move towards marketing its own chips, as reported by Reuters. The UK-based company offers vital intellectual property that businesses like Apple and Nvidia utilize under license to develop their central processing units (CPUs). Not content with its current revenue streams, Arm is contemplating the sale of its chips to generate additional profits.
In a significant shift, Arm has been attracting executives from its licensees and engaging in competition with Qualcomm, one of its major clients, to supply data center CPUs to Meta Platforms. As confirmed by sources, Arm's actions mark a departure from its traditional role as a neutral industry player, potentially pitting businesses reliant on Arm against the company itself for contracts.
Arm chose not to provide an official statement on these developments when contacted by Reuters. Furthermore, recent measures, including hiring efforts aimed at transitioning from IP design to direct chip sales with a focus on AI capabilities, underscore Arm's commitment to establishing its presence in the chip manufacturing sector.
While Arm's CEO previously stated the company does not manufacture chips, recent actions suggest otherwise. Arm's aggressive recruitment of industry talent and reported successes in securing business with Meta Platforms and Broadcom indicate a shift towards direct competition within the chip manufacturing domain, potentially challenging tech giants like Qualcomm and Nvidia.