Arm Holdings, owned by SoftBank Group, recently explored the acquisition of UK-based Alphawave IP Group to enhance its capabilities in developing artificial intelligence (AI) chips. The interest in Alphawave was driven by its expertise in serializer-deserializer (SerDes) technology, which is crucial for high-speed data transfer between chips, a key component in AI applications. However, after initial discussions, Arm decided not to proceed with the acquisition. Meanwhile, Alphawave, which has been working with investment bankers to explore a sale, has also attracted interest from Qualcomm Inc., which is considering making an offer for the company. Qualcomm must announce its intention to make an offer by April 29, 2025, to comply with UK takeover rules. Alphawave's shares surged by 47% following the news of potential acquisition interest, reflecting the market's response to the strategic value of its technology in the rapidly growing AI sector. Alphawave has a joint venture in China called WiseWave with Wise Road Capital, which is on a US blacklist due to national security concerns.