Rene Haas, CEO of chip tech provider Arm Holdings, holds a replica of a chip with his company’s logo on it, during an event in which Malaysia’s Prime Minister Anwar Ibrahim officially announces a $250 million deal with the company, in Kuala Lumpur, Malaysia March 5, 2025. REUTERS/Hasnoor Hussain/File Photo

 

SAN FRANCISCO, July 9, 2025 — Arm Holdings has revealed a remarkable 14-fold increase in the number of data center customers using its chip architecture since 2021, reaching a total of 70,000 organizations. The dramatic surge highlights the company’s growing presence in the cloud and AI markets, driven by rising demand for high-performance, energy-efficient processors.

Under the leadership of CEO Rene Haas, Arm has aggressively expanded beyond its traditional dominance in mobile chips to target the PC and data center sectors. The company’s success comes at a time when the semiconductor industry is experiencing mixed results—AI computing is booming, while mobile and PC chip sales continue to lag.

AI Boom Propels Growth

Arm attributes much of its expansion to the growing interest in generative artificial intelligence. Since 2021, the number of startups leveraging Arm-based chips has jumped 12-fold, underscoring the company’s relevance in cutting-edge computing applications.

Chips built on Arm’s architecture are recognized for their low power consumption and high performance—two key attributes for the energy-intensive data center market. These efficiencies have made Arm a go-to choice for cloud computing giants like Amazon Web Services (AWS), Google Cloud, and Microsoft Azure, all of which are developing custom Arm-based processors.

Support from Cloud Titans

Amazon, for instance, has launched several generations of its Arm-powered CPUs since 2018, including specialized versions for AI workloads. Millions of Arm chips are now deployed across AWS’s vast cloud infrastructure. Arm’s strategic partnerships with tech heavyweights are a major factor in its growing share of the data center market, traditionally dominated by x86-based processors from Intel and AMD.

Developer Ecosystem Expands

In addition to its hardware success, Arm’s software ecosystem is thriving. The company reports that the number of applications running on Arm-based machines has doubled to 9 million since 2021. Meanwhile, the global developer base working with Arm technology has grown by 50%, reaching 22 million developers.

Challenges Remain

Despite these achievements, Arm has held off on providing forward-looking financial guidance due to ongoing trade uncertainties. The broader chip market remains unpredictable, with uneven performance across sectors.

Still, Arm’s continued growth in cloud and AI positions it as a formidable player in the evolving semiconductor landscape, challenging legacy leaders with its flexible and efficient architecture.

For author: Staff Writer
Courtesy of: Forbes
Source: Reuters