Arm CEO Says Data Center Business Is 'Exploding'
Summary
Arm CEO Rene Haas reports that the company's data center business is rapidly expanding, potentially surpassing handsets in significance. Haas shared insights during an interview on Bloomberg Tech, highlighting the exciting growth trajectory for Arm's future.
Key Insights
What does Arm's data center business refer to?
Arm's data center business involves licensing its CPU architectures, such as Neoverse, and Compute Subsystems (CSS) to major hyperscalers like NVIDIA, AWS, Google, and Microsoft for designing power-efficient processors used in servers and AI systems, driving significant royalty revenue growth.
Why is Arm's data center growth potentially surpassing handsets?
Data-center-related royalty revenue grew over 100% year-over-year due to expanding total addressable market, market share gains (nearing 50% among top hyperscalers), and higher royalty rates from technologies like v9 architecture; analysts project it will surpass smartphone royalties by the end of the decade.
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