Arm CEO Rene Haas highlighted the rapid integration of AI technology across devices and the significant role of the data center in AI development, emphasizing the successful partnership with Nvidia to enhance AI compute capabilities. He also discussed the promising Stargate project, which presents substantial opportunities for innovation and growth, while noting Arm’s strong performance in the smartphone market despite broader challenges.
In a recent discussion, Arm CEO Rene Haas addressed the rapid adoption of artificial intelligence (AI) technology, countering claims that its growth is slowing. He emphasized that AI is increasingly being integrated into various devices, including smartphones and PCs, and that the acceleration of AI adoption is evident across the industry. Haas highlighted that the data center remains a key area for AI development, with significant advancements being made in general-purpose computing and AI-specific applications.
Haas discussed the partnership between Arm and Nvidia, particularly in the context of AI compute and general-purpose compute in cloud environments. He noted that AWS’s Graviton, which utilizes Arm architecture, has seen over 50% of new installations based on Arm technology. This collaboration is crucial for the development of large language models, which require substantial computational power. The synergy between Arm’s CPUs and Nvidia’s GPUs is driving growth in both sectors.
When asked about potential slowdowns in Nvidia’s operations, Haas expressed confidence that there is no indication of a slowdown. He pointed to the increasing capital expenditures from major tech companies like Google, Microsoft, and Meta, which are investing heavily in AI infrastructure. The demand for training large language models continues to grow, and advancements in AI are being made rapidly, ensuring that the momentum in the industry remains strong.
Haas also touched on the Stargate project, a significant infrastructure initiative projected to create vast opportunities for technology innovation. Arm has been named as a key technology partner in this $100 billion project, which is expected to generate substantial investment and growth potential for the company. He reassured stakeholders that there are ongoing plans for capitalizing on this opportunity, emphasizing Arm’s position as the preferred CPU architecture for Stargate.
Finally, Haas addressed concerns regarding Arm’s performance in the smartphone market, asserting that the company is experiencing healthy growth despite broader market challenges. He reported a 23% year-on-year increase in royalty growth, significantly outpacing the overall market, which is seeing only single-digit growth. The premium segment of the smartphone market remains strong, driven by consumer demand for AI features, indicating that Arm’s diverse portfolio across various sectors continues to thrive.