UK-based Arm is emerging as a major player in the AI chip industry, benefiting from the investor boom in semiconductors, which has driven its valuation to USD157 billion. Traditionally a chip design licensor, Arm’s energy-efficient architecture has powered nearly all mobile devices and is increasingly valuable as AI data centers require more power-efficient solutions. Now, Arm plans to produce its own AI chips, positioning it against giants like Nvidia. CEO Rene Haas sees Arm tech becoming integral to AI, with SoftBank CEO Masayoshi Son pushing a vision for Arm-powered data centers. However, Arm’s shift risks straining relationships with long-time customers, and analysts are skeptical it can match Nvidia’s capabilities due to Nvidia’s established hardware-software ecosystem.