ARM is developing a GPU to compete with Nvidia and Intel
According to foreign media, British chip giant ARM is developing a GPU in Israel that will compete with Nvidia and Intel. It is estimated that ARM employs about 100 chip and software development engineers in its global graphics processing group at its Ra'anana development center.
The report pointed out that ARM is currently working on graphics processing for the video game market. At the same time, if ARM decides to enter the field in an all-round way, the technology can also be used for artificial intelligence processing, as is the case with Nvidia.
ARM operates differently from other chip companies. It does not develop or manufacture its own processors, but develops its own intellectual property or chip development software, and then sells it to chip companies, which adjust it according to their needs and integrate it into their own unique technology. In this way, ARM has become the "Switzerland" of the chip industry-it provides software to everyone, but does not compete with them-although this may change soon. The company's customers include Qualcomm, MediaTek and Apple. Nvidia also uses ARM technology, although not in the GPU field.
It is understood that ARM's technology in the field of games has been applied to processors for mobile phones and tablets, including processors produced by Qualcomm. Game companies including King, Riot Games, War-Gaming and Tencent have all worked with Arm to improve gaming performance on chips produced based on its technology.
Arm's hardware team in Ra'anana is responsible for the development of many components of these GPUs, including the flagship Immortalis GPU, while the Israeli software team develops software interfaces for external graphics engine developers, including Vulkan and OpenGL, for game developers at large companies and startups. Arm's Israeli office is also responsible for software development and development tools, cybersecurity elements to protect chip activity, and sales and service teams for Israeli chip companies that work with Arm.
Arm's team in Israel works with startups such as Hailo, which has developed an AI chip that is mainly installed in security cameras. The development center assisted Hailo with programming testing shortly after its establishment, and eventually helped it raise $16 million in early financing, according to reports. Another Israeli company that has worked with Arm is NeuReality, a serial entrepreneur Moshe Tanach. The company has worked with Arm and AMD to develop hardware that eliminates the use of Nvidia's expensive servers and saves electricity. NeuReality's 7nm chips use Arm's Neoverse technology and are designed for complex AI processing operations in data centers and end devices.
Arm's Israeli development center is managed by Dedi Yellin, Arm GPU hardware engineering director and Israel site manager. He joined Arm in 2015 when the British company acquired Israeli startup Sansa Security for $80 million. Yellin initially served as director of hardware development at the Israeli company. Sansa Security develops data security components for mobile phones.
Arm, owned by SoftBank, was one of Wall Street's most successful tech IPOs last year, with a valuation of $51 billion when it went public in September 2023. The company is currently valued at $123 billion and the stock price is up nearly 70% in 2024. As of last month, the stock price had risen 170% in 2024, but in mid-July, the stock price fell by about a third due to lower-than-expected sales forecasts.
Earlier this month, Arm reported second-quarter revenue of $939 million, up 39% from the same period last year. According to its financial forecast, revenue in the third quarter of 2024 is expected to be between $780 million and $830 million. Arm faces competition from open source company RISC-V, which was founded at the University of California, Berkeley, allowing the developer community to design chip technology and companies to use it for free.
But sources said Arm has several possible growth directions. The company is believed to be planning to launch an AI processor for its own servers to compete with Nvidia. There are also reports that Arm plans to work with MTK and Nvidia to launch an AI processor for PCs to compete with Intel and AMD processors. In addition, Arm also provides services to technology giants such as Apple, Google and Amazon to help them develop AI processors and servers to avoid dependence on Nvidia and Intel. Arm has 7,300 employees in development centers in Cambridge, UK, the United States, Taiwan and Israel.
