Arm reportedly creating GPUs for home PCs and AI

After years of working with server and mobile processors, Arm is reportedly interested in entering the competitive GPU market. This is according to rumors coming directly from Israel, where the company has a factory that would be responsible for developing its graphics cards.

According to the Israeli newspaper Globes, Arm has approximately 100 software and hardware engineers at its Ra’anana factory. There, the professionals are said to be developing a GPU primarily aimed at gaming on home PCs, but which could also be used in AI processing for companies. In other words, following in the footsteps of Nvidia.

The investment in GPUs would come from the gains that Arm has made in recent quarters. Globes reports that the company was valued at $51 billion in 2023, but reached a market value of $123 billion this year. As such, the company’s shares have grown by almost 70% this year, despite a considerable drop recently due to sales below expectations.

In any case, Arm saw 39% growth in Q2 2024, adding revenue of $939 million. For the third quarter, revenue is expected to be lower, but still between $780 and $830 million.

Arm wants to become more competitive?

The Globes folks call Arm the “Switzerland” of the chip industry, as the company works with nearly every big tech company while avoiding direct competition. However, the advent of AI and the massive investment hype that has been generated may change this strategy somewhat.

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There is currently a huge demand from customers for alternatives to Nvidia, which has dominated the AI ​​segment with its GPUs. With its name, expertise and heritage, Arm would be well positioned to compete in this market.

We should also remember Softbank’s Project Izanagi. The Japanese company has already officially announced that it wants to compete with Nvidia in AI and, as it owns Arm, it may end up involving the “Switzerland of chips” in this project as well.