Meta · The Register
Datacenter to become Arm’s biggest business ‘soon’
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Someone other than Meta is buying $1bn of its new AGI chips.
Key facts
- The company forecast $1.25 billion revenue for its current quarter, and said cash from AGI chip sales will start to arrive in volume starting FY 27/28
- During its Q4 FY 2025/26 earnings call on Wednesday, CEO Rene Haas said “Customer response to the Arm AGI CPU has been strong
- CFO Jason Child chimed in with a prediction Arm is also on track to double annual revenue from selling its IP to $10 billion by 2031, with most of that coming from datacenter products
- Investors weren’t sure what to make of this, first sending the company’s share price up ten percent above its $237 close, before pushing it down to $222. ®
Summary
Chip design company Arm says the datacenter will soon be its biggest source of revenue. Arm rose to prominence as a purveyor of chip designs for low-powered devices and then became the de facto standard for smartphone processors. In March, Arm announced a new CPU design called “AGI” aimed at powering agentic AI applications. The CEO also admitted that Arm is yet to assemble the supply chain to deliver $2 billion worth of AGI silicon, but is working to get that right.