Arm Holdings, a chip technology provider under SoftBank's ownership, recently contemplated acquiring UK-based Alphawave to obtain crucial technology for developing its own AI processors. Alphawave, which specializes in semiconductor intellectual property, considered a sale after receiving interest from Arm and other firms, but ultimately, Arm opted not to pursue the acquisition. The company's objective was to obtain Alphawave's "serdes" technology, which is vital for rapid data transfer on and off a chip—an essential feature for AI applications that typically require multiple interconnected chips. While Arm is primarily recognized for licensing intellectual property instead of manufacturing chips, it has been working on strategies to enhance profits and grow its business, including the possibility of designing and producing its own chips.

Following this news, Alphawave's shares experienced a 21% increase. The potential deal was further complicated by Alphawave's joint venture in China, which has encountered U. S. blacklisting issues related to national security.