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Astera Labs, Inc. (NASDAQ:ALAB) shares are volatile Wednesday following a new partnership with Arm Holdings Plc (NASDAQ:ARM).
What To Know: Astera Labs announced it joined Arm Total Design, an ecosystem focused on accelerating custom system-on-chip (SoC) development based on Arm Neoverse Compute Subsystems (CSS).
The collaboration combines Astera Labs' Intelligent Connectivity Platform with Arm Neoverse CSS to enable chiplet solutions designed for the growing custom AI infrastructure market.
The company said the shift toward chiplet-based architectures is being driven by the complex integration requirements of rack-scale AI systems. As workloads become more specialized, chiplet designs allow developers to combine compute, memory, networking and acceleration components into modular systems optimized for performance and cost efficiency.
As a design services partner in Arm Total Design, Astera Labs will provide PCIe, Ethernet, CXL and UALink connectivity solutions through its Intelligent Connectivity Platform. The partnership aims to accelerate customer development timelines, improve interoperability and reduce qualification risks across custom AI platforms.
Sanjay Gajendra, president and COO at Astera Labs, said the collaboration will help customers "build differentiated AI infrastructure that can scale from rack-level deployments to massive data center installations."
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ALAB Price Action: Astera Labs stock traded as high as $170.58 on Wednesday before pulling back. At the time of writing, Astera shares are up 0.51% at $162.37, according to data from Benzinga Pro.
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