SoftBank, Intel partner to develop next-gen memory for AI
What's the story
Saimemory, a subsidiary of SoftBank, has partnered with Intel to develop next-gen memory technology. The collaboration, dubbed the "Z-Angle Memory program," or ZAM, aims to meet the growing demands of artificial intelligence (AI) and high-performance computing. Prototypes are expected by March 31, 2028, with commercialization planned for fiscal year 2029.
Market reaction
Stock market reaction
Following the announcement of this strategic partnership, shares of both SoftBank and Intel saw a significant increase. SoftBank's shares rose by 3.13%, while Intel's stock surged by an impressive 5% in overnight trading on Robinhood. The market response indicates investor confidence in the potential success and impact of this collaboration on future technology developments.
Tech transfer
Saimemory's focus and Intel's existing work
Saimemory, which was founded in December 2024, will leverage Intel's memory technology and expertize. This will be particularly from the work done under the US Department of Energy's Advanced Memory Technology program. The initiative focused on developing core technologies for advanced memory systems, with Intel specifically working on enhancing performance and power efficiency for next-gen Dynamic Random-Access Memory (DRAM) used in computers and servers.
Tech innovation
Standard memory architectures aren't meeting AI needs: Intel executive
Dr. Joshua Fryman, Intel Fellow and CTO of Intel Government Technologies, said standard memory architectures aren't meeting AI needs. He revealed that Intel has developed a new memory architecture and assembly approach that improves DRAM performance while reducing power use and costs. This technology is expected to be widely adopted over the next decade, positioning it for broader use in AI computing systems.
Supply chain impact
Addressing AI's memory demand and energy consumption
The partnership between Intel and SoftBank comes amid a massive surge in demand for memory used in AI-related applications. This unprecedented demand has far outstripped supply, leading to shortages across the entire memory supply chain. The ZAM program's focus on energy efficiency also highlights concerns over the enormous energy consumption required for AI computing.