Masayoshi Son says AWS and Microsoft will buy more chipsets from the SoftBank Vision Fund-backed Arm, and not – Business Insider India

Out of the 88 companies that the SoftBank Vision Fund 1 has invested in, Son assumes that as many as 15 companies could go bankrupt, while 60 others could post average performance. That leaves 13 companies, which Son believes could end up being successful.British chipmaker Arm Holdings could be one among those 13 companies. In fact, Son considers Arm to be one of the important assets of his fund. And why wont he Arms shipments have been growing exponentially.

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Amazon Web Services, the current market leader in public cloud services, has announced Graviton2 chipset based on Arms designs for its cloud infrastructure. According to SoftBank, Graviton2 is believed to be 65% faster than Intels Xeon chipsets, and could help save up to 40% of the cost.

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Arm is reportedly looking at an IPO in the next 5 years. However, that may make it difficult for SoftBank, which needs at least $3 billion every year in just equity dividends.SoftBank reported its first annual loss in 15 years, posting a net loss of $894 million in FY2019. During the same period last year, it posted a net profit of $19.6 billion.

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SoftBank acquired Arm in 2016 for $32 billion. In 2018, it sold 25% of the stake for $8 billion. In its latest earnings, the Japanese group revealed that its stake in Arm is valued at $25 billion, which implies an appreciation of $1 billion in the chipmakers value.

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Arm shipped 100 billion chipsets in the first 27 years the next 60 billion came in 3 yearsEstablished in 1991, Arm has shipped more than 160 billion chipsets till date. The first 100 billion shipments took 27 years, while the next 60 billion came in just 3 years.

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SEE ALSO:Top 10 scary quotes from Masayoshi Son during the SoftBank earnings callSoftBank Group lost $6 billion on Alibaba shares and another $1.4 billion on Uber during the COVID-19 crisisWeWork India lays off 20% staff, says tough step needed for sustainable structureAdvertisement

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Masayoshi Son says AWS and Microsoft will buy more chipsets from the SoftBank Vision Fund-backed Arm, and not - Business Insider India

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