ARM (ARM.US) once sought to acquire chip IP supplier Alphawave to enhance AI technology.

According to reports, Arm Holdings (ARM.US) had sought to acquire the British company Alphawave in order to gain a crucial technology for building their own artificial intelligence (AI) processors. The report stated that Alphawave, which provides semiconductor intellectual property (IP), had been in discussions with its investment bankers about a potential sale after attracting interest from Arm and other potential buyers. However, the report mentioned that Arm, a British chip architecture design company majority-owned by SoftBank Group, decided not to proceed with the acquisition of Alphawave after initial negotiations. Arm and Alphawave declined to comment. On Tuesday, Alphawave's stock price rose by about 15% on the London Stock Exchange. Arm's US stocks slightly declined by 0.4% in pre-market trading. The report mentioned that Arm recently had talks with Alphawave to purchase their technology for controlling chip data transmission speed, which is crucial for artificial intelligence as applications like Siasun Robot & Automation may require assembling thousands of chips simultaneously for efficient operation. Arm itself does not manufacture chips, but sells and licenses its building blocks and intellectual property to companies like Apple Inc. and NVIDIA Corporation for designing chips for smartphones, laptops, and data center processors.