Arm Holdings aims to capture 50% of the global data center CPU market by the end of 2025, up from about 15% in 2024.

Mohamed Awad, Arm’s infrastructure chief, attributes this growth to rising demand for AI technologies.

Arm’s CPUs serve as “host” chips in AI systems, managing operations among AI processors. These chips are energy-efficient, which is crucial for AI data centers that consume large amounts of power.

Arm, primarily owned by Japan’s SoftBank Group, licenses its intellectual property and earns royalties from companies like Apple, Nvidia, and cloud providers.

While x86 chips from Intel and AMD have dominated the market, software development is increasingly focusing on Arm-based systems.

Major tech firms, including Amazon, Google, and Microsoft, have adopted Arm technology for their data center CPUs.

Amazon reported that more than half of the chips it deployed in the past two years were designed in-house using Arm’s technology.

Recent Arm developments