"Arm expects to eventually generate approximately $15 billion in annual revenue from AI infrastructure. Haas noted that data centers are expected to become the company's largest business segment soon. He said customers are increasingly looking to place Arm technology at the center of AI data centers."
"According to the company, demand for processors designed for AI workloads is growing particularly rapidly. The British company Arm originally achieved its dominant position thanks to energy-efficient designs for smartphones and other mobile devices. Meanwhile, major cloud companies are increasingly adopting the architecture for servers and AI applications."
"Haas stated that companies are increasingly relying on a combination of GPUs and specialized CPUs for AI infrastructure. Arm sees opportunities here because the new AGI processors feature a large number of computing cores suitable for parallel AI workloads. According to the CEO, the market still underestimates the additional CPU capacity needed for the further rollout of AI services."
Arm, traditionally dominant in mobile chip design, is repositioning itself toward data center and AI infrastructure markets. The company introduced AGI processors specifically for agentic AI applications where AI systems operate autonomously. Major cloud providers like Amazon and Microsoft have already developed data center chips using Arm architecture. Arm has secured over $2 billion in commitments for fiscal years 2027-2028. The company recognizes that AI deployment requires substantial CPU capacity alongside GPUs, and its new AGI processors feature numerous computing cores optimized for parallel AI workloads. Data centers are expected to become Arm's largest business segment, with projected annual revenue of approximately $15 billion from AI infrastructure alone.
Read at Techzine Global
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