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The number of customers who use Arm (NASDAQ:ARM)-based chips in data centers has increased to 70,000, a 14-fold increase since 2021, Reuters reported.
Like other chip companies, the British chip architecture designer Arm has gained from the enthusiasm around generative AI computing and said a significant part of its data center growth is due to AI. The company said it had seen a 12-fold increase in startups that are using Arm chips from 2021, the report added.
Arm did not immediately respond to a request for comment from Seeking Alpha.
Arm’s strong outlook comes at a time when the chip industry is facing near-term headwinds. The chips related to setting up AI data centers have boomed, but other large parts of the semiconductor market, such as PC and mobile sales, have remained sluggish, the report noted.
Arm declined to provide annual financial guidance because of trade uncertainty when it reported results in May.
As per Arm, the company has nearly doubled the number of applications since 2021 running on Arm-based machines to 9 million. The developer base working with Arm’s computing architecture has grown by 1.5 times to 22 million since 2021, the report added.
Earlier the data center market turned out difficult for Arm to break into, but more recently the company been helped by cloud computing companies such as Amazon (AMZN), Alphabet’s Google (GOOG) (GOOGL) and Microsoft (MSFT), developing home-grown Arm chips for use in their infrastructure, according to the report.
Amazon has rolled out several generations of its data center processors (CPU) since 2018, including AI versions, and added millions of Arm-based chips to its cloud computing platform, the report added.
Shares of Arm rose about 1% premarket on Wednesday.