Exclusive: Arm estimates a 14-fold increase in data center customers since 2021, company says
Under the guidance of Chief Executive Rene Haas, chip technology maker Arm has been working to expand its business into the PC market and has made substantial gains selling its architecture for data center chips as well.
Like other chip companies, Arm has benefitted from the frenzy around generative artificial intelligence computing and said a significant portion of its data center growth is due to AI. The company said it had seen a 12-fold spike in startups that are using Arm chips from 2021.
Arm's strong outlook arrives as the chip industry faces near term challenges. While chips related to building AI data centers have boomed, other large swaths of the semiconductor market such as PC and mobile sales have remained slow.
The company declined to provide annual financial guidance due to trade uncertainty when it released results in May.
Chips based on the Arm architecture are known for delivering high performance with low energy consumption, which is one of the reasons it powers just about every mobile phone on the planet. Such performance has been adapted by chip designs for data center processors, which typically consume substantially more energy.
The data center market earlier proved difficult for Arm to break into, but the company has more recently been aided by cloud computing giants such as Amazon (AMZN.O), opens new tab, Alphabet's Google (GOOGL.O), opens new tab and Microsoft (MSFT.O), opens new tab developing home-grown Arm chips for use in their sprawling infrastructure.
Customers often rent Arm-based chips through a cloud computing company such as Amazon's AWS.
Amazon has rolled out several generations of its data center processor (CPU) since 2018, including artificial intelligence versions, and added millions Arm-based chips to its cloud computing platform.
But SoftBank-owned Arm has made big gains in other areas as well, as it seeks to erode the computing dominance of designs from Advanced Micro Devices (AMD.O), opens new tab and Intel (INTC.O), opens new tab, based on the x86 architecture.
The group of developers worldwide working to make apps that run its tech is crucial to a chip company's success.
According to the company, Arm has roughly doubled the number of applications since 2021 running on Arm-based machines to 9 million. The developer base working with the company's computing architecture has increased by 1.5 times to 22 million since 2021.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
28 minutes ago
- The Independent
Trump claims he's made a ‘massive' trade deal with Japan
President Donald Trump boasted Tuesday that he had made a 'massive' deal with Japan that would generate 'thousands of jobs' and billions of dollars for the U.S. The president announced the trade framework – 'perhaps the largest Deal ever made' – in a Truth Social post Tuesday, revealing that a 15 percent tax on goods imported from Japan had been agreed. In the post Trump said Japan would invest 'at my direction' $550 billion into the U.S. and would 'open' its economy to American-made vehicles as well as 'rice' and 'other things.' But further details remained scant. The 15 percent tax on imported Japanese goods is a significant drop from the 25 percent rate that Trump, in a recent letter to Japanese Prime Minister Shigeru Ishiba, said would be levied starting on August 1. 'This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it,' the president posted on Truth Social, adding that the United States 'will continue to always have a great relationship with the Country of Japan.' 'This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan. Thank you for your attention to this matter!' Early Wednesday in Tokyo, Japanese Prime Minister Shigera Ishiba confirmed the new trade agreement, saying it would benefit both sides and help them work together. 'The government was determined to protect national interests,' Ishiba told reporters, per the Wall Street Journal. Trump's announcement appeared to excite investors, with the benchmark Nikkei – the Tokyo stock market – climbing 2.6 percent to its highest in a year, with shares of automakers also surging. Toyota grew by more than 11 percent, with Honda and Nissan both up more than 8 percent. But American automakers were less buoyed with the deal, with concerns raised over low import levies from Japan, compared to tariffs on imports from Canada and Mexico remaining at 25 percent. Matt Blunt, head of the American Automotive Policy Council, said, "Any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American-built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers.'
Reuters
29 minutes ago
- Reuters
Dollar holds losses after Trump announces Japan trade deal
TOKYO, July 23 (Reuters) - The dollar stayed weak on Wednesday, having lost ground overnight, after U.S. President Donald Trump announced a trade deal with Japan ahead of an impending tariff deadline. The U.S. currency has been one of the biggest losers since Trump announced sweeping tariffs on trading partners on April 2, only to delay and suspend most of the duties as his administration sought bilateral trade deals. The yen flipped to losses on the day after a report that Japanese Prime Minister Shigeru Ishiba intends to step down next month. In a post on Truth Social, Trump said that a tariff rate of 15% was set on imports from Japan, down from the 25% rate that was expected to take effect from August 1, and added the Asian nation will invest $550 billion in the United States. "Dollar softness seems to be our opening proposition," said Michael McCarthy, Market Strategist at Moomoo Australia. "Clearly there's some dovishness infecting the market at the moment around the U.S. dollar and we're seeing that in the bond markets too." The dollar traded at 146.90 yen , up 0.2% after having slid 0.5% in the previous session. The dollar index , which tracks the greenback against major peers, was little changed at 97.48 after a three-day decline. The gauge has lost 6.6% since Trump's "Liberation Day" tariff announcement on April 2. U.S. Treasury Secretary Scott Bessent said on Monday the administration is more concerned with the quality of trade agreements than the timing. Asked whether the deadline could be extended for countries engaged in productive talks with Washington, Bessent said Trump would make that decision. Uncertainty over the eventual state of tariffs globally has been a huge overhang for the foreign exchange market, leaving currencies trading in a tight range for the most part, even as stocks on Wall Street have scaled fresh highs. Japan's all-important auto industry and rice imports were sticking points in protracted trade talks with the U.S. In his post on Truth Social, Trump said Japan would open to trade for U.S. cars, trucks, rice and certain agricultural products, among other items. Ishiba told reporters in Tokyo that the deal would set a 15% tariff on imports of Japanese vehicles. Ishiba, whose ruling coalition lost its majority in upper house elections on Sunday, has made up his mind to announce his resignation by the end of August, the Mainichi newspaper reported. The euro stood at $1.1736 , down 0.2%. Sterling was little changed at $1.35180 , off 0.1%. Also weighing on investors' minds were worries about Federal Reserve independence, given Trump has repeatedly railed against Chair Jerome Powell and urged him to resign because of the central bank's reluctance to cut interest rates. Bessent on Monday took a softer stance, saying there is no need for Powell to step down immediately, adding that he should see through the end of his term in May if he wants.
Reuters
an hour ago
- Reuters
India equity benchmarks set to track Asian peers higher after US-Japan deal
July 23 (Reuters) - India's equity benchmarks are set to open higher on Wednesday, tracking gains in their Asian peers after the U.S. announced a trade deal with Japan, fuelling expectations of more to come. The uncertainty over India-U.S. interim trade deal ahead of President Donald Trump's August 1 deadline could limit gains in the Indian market. The Gift Nifty futures were trading at 25,164 points as of 8:08 a.m. IST, indicating that the Nifty 50 (.NSEI), opens new tab will open above Tuesday's close of 25,060.9. Japanese shares led the rally in Asian equities on Wednesday following the trade deal announcement. MSCI's broadest index for Asia-Pacific stocks outside Japan (.MIAPJ0000PUS), opens new tab also advanced 0.7%. In another positive development, U.S. and Chinese officials will meet in Stockholm next week to discuss an extension to the August 12 deadline for negotiating a trade deal, Treasury Secretary Scott Bessent said. Easing global trade tensions is a positive for equities as it can reduce the uncertainty about global growth and inflation, which has kept the U.S. Federal Reserve from cutting interest rates. Meanwhile, the prospects of an interim trade deal between India and the U.S. before Washington's August 1 deadline have dimmed, with talks deadlocked over tariff cuts on key agricultural and dairy products, Reuters reported, citing two Indian government sources. In the absence of a trade deal, analysts expect market to remain stock-specific amid earnings season. Infosys ( opens new tab, Dr Reddy's Laboratories ( opens new tab and Tata Consumer Products ( opens new tab are the Nifty 50 companies scheduled to release their earnings on Wednesday. ** Fintech firm Paytm ( opens new tab swings to a profit in June quarter, driven by robust growth in its lending business and tight cost controls, and said it expects a further improvement in earnings ** Dixon Technologies ( opens new tab posts higher revenue and profit for the first quarter on the back of strong growth in mobile and other electronic manufacturing services ** Jana Small Finance Bank ( opens new tab posts lower profit due to a drop in net interest income, while gross non-performing assets rose during the quarter
