00:00Big news yesterday, obviously, was about NVIDIA moving into the PC space with the RTX Spark built on the platform,
00:09if you will, and the chip design by ARM Holdings.
00:12How important is this as NVIDIA really moves into an area that is dominated by the likes of Intel and
00:19AMD and the timeline and the, I guess, the runway that this could potentially provide you and the scalability?
00:27Yeah, no, thank you for asking. I think it's one of these classic cases of right product, right time.
00:31Two interesting technologies are being put into one. There are 20 ARM CPU cores inside that chip.
00:38That's the most CPU cores you can find in any laptop SoC designed in partnership with MediaTek.
00:44And then NVIDIA taking their Blackwell RTX GPU, combining it with that into a super chip, and you have the
00:52most performant GPU on the market that can run agentic AI.
00:55So as we're moving more and more towards these heavy-duty workloads on PCs, running agents, this is the perfect
01:01chip at the perfect time.
01:02So we're super excited about it.
01:04You know, all the guys that are clamoring around the Computex halls, they're all asking, what about battery life?
01:09Because the RTX past iterations, if it's running the games, and that's something Jensen Huang showed, advanced capabilities, agentic AI,
01:17and high processing graphics, battery life is a concern.
01:21What alleviates your concern that battery life, all-day battery, is a tough thing to fulfill?
01:27This is the hallmark of all things ARM, right?
01:30Because we are literally in every single smartphone on the planet, so everything we do is around power efficiency.
01:35So we extend that into the laptop space.
01:38The previous laptops have been announced on ARM, whether the Mac Neo or the MacBook Air or the Google Chromebook
01:45or even some of the Windows machines.
01:47They've got the best battery life in the business, 18 hours, 21 hours.
01:51So we're expecting the products built with this chip to be terrific.
01:54They can deliver then.
01:55Yeah, absolutely.
01:55Okay.
01:56Qualcomm Snapdragon competes on Windows on ARM space as well.
02:00What percentage of the PC market do you see ARM really having its fingerprints all over by the end of
02:06this year or the next five years, let's say?
02:07Yeah, I think when you look at all the categories, because ARM is the only supplier on the planet from
02:13a CPU architecture standpoint that does all the platforms.
02:16What do I mean by that?
02:17Mac OS, Windows, Chrome, and Linux.
02:22When we look at that all in totality, could we see a 50% number at the end of the
02:25decade?
02:26Absolutely.
02:27Oh, wow.
02:28But at the same time, you're also moving into, I guess you could say, a strategy shift, a radical move,
02:34that you're going to start doing server chips of your own, branded with your own name, maybe.
02:41But again, did you see a gap?
02:44Let me just ask you that.
02:45What gap did you see in the market that you would not necessarily go against your competitors, but you're going
02:51to be putting a product up there against some of your key competitors like NVIDIA?
02:55Yeah, so if you look at the evolution of our technology over the last four or five years since I
03:00became the CEO, one of the things we've seen is a consistent demand of, please do more.
03:05And we started taking our IP, putting them into blocks that we call subsystems, combining everything to help people build
03:11chips faster.
03:12We did that about two, three years ago.
03:14The demand on that has been fantastic.
03:17And that naturally started to lead into customers asking us, hey, could you take these subsystems and just finish it
03:23off and build the chip?
03:24Because in some cases, the final chip, greater than 90% of the IP on that chip, belonged to ARM,
03:31belonged to those subsystems.
03:32So first off, we were asked to do it.
03:34Meta asked if we would, and we said yes.
03:36I was going to ask you about Meta.
03:37That's pretty much the launch customer.
03:39That was the launch partner.
03:40And secondly, it was a market that was really underserved.
03:44There are folks like NVIDIA, Amazon, Google, Microsoft, who can build ARM server chips.
03:51But there are some folks who just don't have that capability.
03:53The Cloudflare, SAP, some of the customers with this AGI CPU, and also Meta.
03:58So really, we were responding to customer demand.
04:01How do you see this business growing over the next year and the next five years?
04:05As you add, perhaps, I would assume, you're already in discussion with other launch customers.
04:09Yeah.
04:09So we talked about, with analysts back in March, about a $15 billion type revenue by the end of the
04:17decade.
04:18We're well on track to hit that.
04:20I'm hoping we can even hit that sooner.
04:22Demand has been stronger than we anticipated.
04:24And I will say, that's a combination of just all things AI.
04:28But also, frankly, it's a great product.
04:30It's two times the performance of an x86 at the same power.
04:34So demand has been fantastic.
04:37So the number we've talked about publicly is $15 billion by the end of the decade, $15 billion.
04:41I'm very confident in achieving that target.
04:44Well, you said that 90% of ARM architecture built into that.
04:48Were you literally simply looking at the market and saying, we can be at the top of the pyramid?
04:52I mean, NVIDIA has taken that space.
04:54What we were seeing was a huge demand for power-efficient technology.
04:58And when you think about what goes into building out AI data centers, power is one of the hugest pieces
05:04of everything.
05:05So if you can build a very efficient machine, it helps save money.
05:08It helps save power.
05:10Then, with all things agentic AI, a lot of that work is done by CPUs.
05:15Yes, the GPU does a lot of work to generate the token.
05:18But the distribution of that token, the administration of that token, the orchestration of that token, that's only work CPUs
05:24can do.
05:25Which is why people have been talking about, oh, my gosh, does CPU demand?
05:28It's just going off the charts.
05:30It's largely because of that.
05:31How much of this is also driven by the fact that SoftBank now pretty much owns ARM Holdings.
05:38You, I believe, are the CEO of SoftBank Group International.
05:43That's right.
05:43They have a portfolio of AI companies.
05:46Do they look at this space and say, we need to be there?
05:50There's a very close symbiotic relationship between the SoftBank Group and ARM.
05:54SoftBank owns 85% of the company-ish, somewhere in that range.
05:59But when you think about things that SoftBank has been very focused on, whether it's around energy, whether it's around
06:04infrastructure, whether it's around financing.
06:07SoftBank and MASA just announced a 5-gigawatt project in France earlier this week.
06:13Having connections between what the two companies are doing is really important.
06:16So I took on this role inside SoftBank Group International to really help with the coordination.
06:21But to be clear, my day job is to CEO of ARM.
06:24That's right.
06:24My number one primary duty is to shareholder of ARM.
06:27So I'm sure you'll start Maja.悦aigrenhibit.
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