SoftBank ends AI chip collaboration with Intel, turns to TSMC
SoftBank has terminated its partnership with Intel, initially aimed at creating an artificial intelligence (AI) chip. The Financial Times reported that this decision was prompted by Intel's inability to meet SoftBank's demands for volume and speed. This development marks a significant setback in SoftBank's strategy to challenge NVIDIA's supremacy in the AI chip market.
Intel's cost-cutting measures preceded partnership dissolution
The termination of the partnership with SoftBank occurred just before Intel implemented severe cost-cutting measures. These included laying off thousands of workers in early August. The timing suggests that Intel's financial struggles may have contributed to its inability to meet SoftBank's expectations, leading to the end of their collaboration on the AI chip project.
SoftBank shifts focus to TSMC for AI chip ambitions
Following the unsuccessful negotiations with Intel, SoftBank has now turned its attention toward Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker. This move indicates that despite the setback with Intel, SoftBank remains committed to its goal of developing an AI chip and is actively seeking new partnerships to achieve this ambition.
