SoftBank Abandons AI Chip Partnership with Intel
According to reports, SoftBank has abandoned plans to collaborate with Intel on the development of an artificial intelligence (AI) chip.
Japanese technology investor SoftBank has reportedly abandoned its plans to create an artificial intelligence (AI) chip in partnership with Intel. The move was intended to challenge industry leader Nvidia, but the partnership failed to materialize, according to a report by the Financial Times.
Intel’s Inability to Meet Requirements:
The report claims that the deal collapsed because Intel struggled to meet SoftBank’s requirements for volume and speed. SoftBank allegedly blamed Intel for the breakdown of the talks, asserting that the U.S. chipmaker could not fulfill the demands necessary for the ambitious AI chip project.
SoftBank Turns to TSMC:
Following the failure of the Intel partnership, SoftBank is now redirecting its focus toward discussions with Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker. TSMC is known for its advanced manufacturing capabilities, making it a potential partner for SoftBank’s ambitions for AI chips.
Intel’s Cost-Cutting Measures:
The failed talks occurred just before Intel announced drastic cost-cutting measures, including thousands of layoffs in early August. These financial challenges may have further complicated Intel’s ability to meet SoftBank’s requirements, leading to the partnership’s collapse.
