SoftBank and Intel Collaborate on Next-Generation AI Memory Technology

Saimemory, a subsidiary of SoftBank Group, has entered into a collaboration agreement with Intel Corporation to develop next-generation memory technology tailored for artificial intelligence (AI) and high-performance computing. This initiative, known as the Z-Angle Memory program (ZAM), aims to address the increasing demands of AI workloads that traditional DRAM cannot efficiently support. Prototypes are expected to be ready by the fiscal year ending March 31, 2028, with commercialization targeted for fiscal 2029.

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Following the announcement, shares of SoftBank rose by 3.13%, while Intel's stock increased by 5% in overnight trading. This positive market response reflects investor confidence in the potential of the partnership to significantly impact the AI infrastructure landscape. The collaboration comes at a time when the semiconductor industry is grappling with memory shortages exacerbated by the rapid growth of AI applications.

SoftBank subsidiary to work with Intel on next-gen memory for AI

Intel's Chief Technology Officer, Dr. Joshua Fryman, emphasized that the current standard memory architectures are inadequate for AI needs. The partnership will leverage Intel's experience from the U.S. Department of Energy's Advanced Memory Technology program, which focused on enhancing performance and power efficiency in next-generation DRAM. This foundational research is expected to inform Saimemory's commercial ambitions.

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Despite the promising collaboration, Intel faces significant challenges in the competitive semiconductor market. The company has experienced declining revenues since 2021 and is projected to continue facing losses in the near term. Analysts have raised concerns about Intel's ability to regain its competitive edge, especially as rivals like Broadcom and Nvidia advance in the AI hardware sector. Broadcom, in particular, has seen substantial growth in AI-related revenue, indicating a shift in market dynamics that could disadvantage Intel.

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SoftBank's CEO, Masayoshi Son, has expressed a strong commitment to expanding the company's investments in AI, including a potential increase in its stake in OpenAI. This strategic focus on AI aligns with the collaboration with Intel, suggesting that SoftBank is positioning itself as a key player in the AI infrastructure market. The upcoming fiscal reports from both companies will be crucial in assessing the viability of their ambitious plans.

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While Intel's stock has shown recent gains, analysts caution that the company is still grappling with supply constraints and stiff competition from other semiconductor firms. The reliance on external funding and the challenges in its foundry business further complicate Intel's growth prospects. As the AI hardware race intensifies, the effectiveness of Intel's strategies will be closely monitored by investors and industry observers alike.

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• “Standard memory architectures aren't meeting AI needs,” — Dr. Joshua Fryman, Intel Fellow and CTO of Intel Government Technologies.

SoftBank and Intel partner on AI memory chips for 2029

• “13% following Tuesday's announcement, signaling investor confidence that this partnership could reshape the AI infrastructure landscape.” — Market Analyst.

SoftBank and Intel partner on AI memory chips for 2029

The collaboration between SoftBank and Intel represents a significant step towards addressing the urgent needs of the AI sector, but the path forward will require navigating a complex and competitive environment.

SoftBank and Intel partner on AI memory chips for 2029