Royalty revenue grew 27% y-o-y to $737m.
Licensing revenue grew 25% y-o-y to $505m.
“We are seeing strong momentum for AI across every layer of computing, from the edge to the cloud,” says Arm, “to align with where this growth is taking shape, we have organised our business into three AI domains: edge AI, serving smartphones and IoT; physical AI, supporting automotive and robotics; and cloud AI, addressing datacentre and networking.”
Two new licences for Arm Compute Subsystems (CSS) were signed in the quarter, bringing the total to 21 CSS licences across 12 companies. Five customers are now shipping CSS-based chips, including two shipping its second-generation platform, and the top four Android smartphone vendors are all shipping CSS-powered devices.
“The shift towards inference is redefining AI datacentre designs. Increasingly, this inference is agent-based,” says Arm. “These workloads are persistent, always on, and power constrained,” continues Arm, adding: “This type of work can only be done by CPUs, which is why this evolution is making the CPU more essential than ever in AI datacentres.”
Arm’s CPU share among top hyperscalers is expected to reach nearly 50% this year. AWS, Nvidia, Microsoft are all using Arm CPU cores.
“Arm delivered a record revenue quarter as demand for AI computing on our platform continues to accelerate,” said Rene Haas, CEO. “Record royalty results in the third quarter reflect the growing scale of our ecosystem, as customers design the Arm compute platform into next-generation systems across cloud, edge, and physical environments to deliver high-performance, power-efficient AI.”
