Arm CEO Rene Haas stressed earlier today that his firm continues to see tailwinds from AI demand. The firm's shares dropped by more than 4% at market open today after investors sold the stock on worries about lower AI demand. Haas appeared in an interview on CNBC, during which he stressed that his firm's CPUs work alongside NVIDIA's GPUs in AI computing and are widely used in general-purpose computing data centers.
He also praised President Trump's $500 billion Stargate AI project, which he believes will create huge opportunities for technological innovation. Haas added that Arm is the CPU vendor of choice for the Stargate program.
Arm CEO Stresses Demand For AI Products Will Grow
Haas's comments about AI demand appeared to have a soothing effect on the stock as it reversed the trend and retook more than a percentage point of losses while he was talking. Haas stressed that, as opposed to perceptions of AI demand slowing down, his company only saw it accelerate. Investors in AI stocks, particularly those with data center exposure, have been wary of them since last month's DeepSeek AI selloff, which wiped a trillion dollars of market value from these stocks.
According to Haas, "the key thing we're seeing taking place in the data centers is two parallels. One is the general purpose compute and that is where we're seeing just continued acceleration of Arm adoption." He mentioned Amazon's Graviton data center chips to add that more than 50% of new installations are Arm-based, with 90% of Amazon's top one thousand customers using Arm products.
Shifting towards AI, Haas outlined that it primarily involves running training and inferencing operations with large language models. NVIDIA's Blackwell chips are the "flagship product," within which "Blackwell is the GPU and Arm is the CPU," according to the ARM CEO. This makes it "a great partnership," due to which Arm is "seeing acceleration for both general purpose compute in the cloud on Arm and AI compute."
When asked whether he was seeing any slowdown in orders for NVIDIA's products, Haas shared that, "I don't really see a slowdown." Delving deeper, he added that "when you look at these large language models that need to be trained . . .these are increasingly requiring lots and lots of power. Lots and lots of compute." Capital spending is not slowing down either, believes Haas.
He also commented on how DeepSeek demonstrating lower costs didn't mean that existing AI models had lost relevance. According to Haas, "People need to remember what's happening is they're distilling, which basically means building, on the frontier models that have been created." Haas added that the reliance on frontier models "doesn't mean the frontier model creation goes away. However, it "does mean that improvements can be made fast." These factors combined lead the Arm CEO to conclude, "net net no, we're not seeing a slowdown of any kind."
Calling Stargate "an amazing opportunity," Haas believes that it's going to create a huge opportunity for technological innovation. He is also optimistic about AI proliferating the consumer end of the market and believes that efficient models after DeepSeek are a great thing for Arm. This is because "you end up having much more efficient models and more efficient models means you can run more inference at endpoints." The endpoints are power-constrained devices, and AI efficiency on this front drives demand for Arm, according to Haas.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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