Arm Stock Spikes -- OpenAI Unveils Major AI Chip Partnership

Oct. 14 Arm Holdings ARM shares gained more than 2.5% on Tuesday morning trading after reports said OpenAI is working with SoftBank's chip unit and Broadcom AVGO to develop a new central processing unit designed for artificial intelligence servers, according to a Tuesday report.

The move extends Monday's rally, when Arm surged 11% after The Information first reported the collaboration. The planned CPU will reportedly complement OpenAI's in-house AI accelerator, which it is jointly developing with Broadcom.

The British chip designer is expected to play a key role in the architecture of the processor, which may be used alongside AI chips from Nvidia and Advanced Micro Devices (AMD) in OpenAI's expanding infrastructure.

Neither Arm nor OpenAI immediately responded to requests for comment. The report comes a day after OpenAI announced a partnership with Broadcom to create 10 gigawatts of custom AI accelerators, with financial terms undisclosed.

SoftBank, which holds about 90% of Arm, is said to be helping fund OpenAI's large-scale data center ambitions through margin loans backed by its Arm shares.