Investing.com -- Arm, the UK-based company that provides crucial intellectual property to firms such as Apple (NASDAQ: NASDAQ:AAPL) and Nvidia (NASDAQ: NASDAQ:NVDA), has begun recruiting from its customer base and competing against them for deals, Reuters reported. This move is part of Arm's effort to expand its profits and revenues, which includes considering selling its own chips, Reuters reported, citing sources familiar with the matter.
Arm licenses its intellectual property to other companies to create their own central processing units (CPUs). Now, the company is not only considering making and selling its own chips but is also actively recruiting executives from its licensees, two sources reported.
In a notable shift in strategy, Arm is now competing against Qualcomm (NASDAQ:QCOM), one of its largest customers, in a bid to sell data center CPUs to Meta Platforms (NASDAQ:META). The information comes from a person who has knowledge of the situation. This move marks a significant change in Arm's business model, which traditionally has focused on supplying intellectual property rather than selling its own products.
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