SoftBank abandons AI chip collaboration with Intel, eyes TSMC for future plans: Report

The decision was made after Intel reportedly struggled to meet SoftBank’s requirements for volume and speed

SoftBank has scrapped its plans to develop an artificial intelligence chip in collaboration with Intel, according to a report by the Financial Times. The decision was made after Intel reportedly struggled to meet SoftBank’s requirements for volume and speed, sources familiar with the matter told FT.

The collapse of the partnership comes as a setback in SoftBank’s efforts to challenge Nvidia’s dominance in the AI chip market. SoftBank has attributed the failure of the talks to Intel's inability to meet its demands, shifting blame onto the U.S. chipmaker.

The talks faltered ahead of Intel’s recent drastic cost-cutting measures, which included laying off thousands of employees in early August. Following the breakdown in negotiations with Intel, SoftBank is now focusing on discussions with Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, to potentially pursue its AI chip ambitions.