Arm Hires from Customers and Competes with Them to Sell Its Own Chips
Arm, a UK-based company that designs the technology behind most smartphone and computer chips, is now planning to sell its own chips.
According to Reuters, Arm has started hiring executives from its own customers, like Apple and Nvidia, and is competing with them for deals. This move could shake up the tech industry, as Arm has always been seen as a neutral partner, not a competitor.
Arm’s technology is used by big companies like Apple, Nvidia, and Qualcomm to make their own chips. But now, Arm wants to expand its business by creating and selling its own chips, especially for data centers and artificial intelligence (AI).
This could put Arm in direct competition with its customers, forcing them to rethink their relationship with the company.
Reuters reports that Arm has been trying to hire executives from its customers since at least November. A recruiter working for Arm reached out to an executive at one of its customers, saying the company is shifting from just designing chip technology to selling its own chips.
Arm is also competing with Qualcomm, one of its biggest customers, to sell chips to Meta (the company behind Facebook).
This new strategy could create tension in the industry. For example, Arm recently took Qualcomm to court over licensing fees, and during the trial, Arm’s CEO said the company doesn’t make chips. But behind the scenes, Arm has been working on this plan for months.
Arm’s move into chip-making could also challenge other tech giants like Nvidia. According to a report by J.P. Morgan, Arm is working with SoftBank and Broadcom to create a special AI chip for data centers. This deal could be worth up to $30 billion for Broadcom.
While Arm’s plans are ambitious, they could disrupt the balance in the tech world. Companies that rely on Arm’s technology may now see it as a competitor, not just a partner.
Reuters highlights that this shift could change how the industry works, especially as Arm pushes into AI and data centers.
(Credit: This simplified explanation is based on original reporting by Reuters.)
https://www.reuters.com/technology/arm-recruits-customers-it-plans-sell-its-own-chips-2025-02-13