Arm Confirms Central Role In $100 Billion Stargate AI Infrastructure Project With OpenAI, Oracle

Arm Holdings plc ARM has affirmed its central position in the artificial intelligence ecosystem through its involvement in OpenAI‘s ambitious $100 billion Stargate AI infrastructure project, as revealed during the company’s third-quarter earnings call.

What Happened: CEO Rene Haas highlighted Arm’s expanding role in AI infrastructure, noting strong momentum in data center deployments alongside partners OpenAI, Oracle Corp. ORCL, and SoftBank Group SFTBY.

“We are very excited about the future, whether it’s about the near-term execution of our strategies with v9 and CSS to all the opportunities that Stargate and Cristal intelligence bring us,” Haas said.

The company reported a record total revenue of $983 million, up 19% year-over-year, driven by increasing AI-related demand.

The Stargate project, set to begin with an 875-acre facility in Abilene, Texas, represents a significant validation of Arm’s architecture in large-scale AI infrastructure. The initial phase includes a 200-megawatt data center, with plans to expand to 1.2 gigawatts – enough power to serve 200,000 homes.

Why It Matters: The company’s involvement in Project DIGITS, a collaboration with NVIDIA Corp. NVDA, further demonstrates Arm’s growing influence in AI computing. The project combines Arm-based Grace CPUs with NVIDIA’s Blackwell GPUs to create what’s being marketed as the world’s smallest AI supercomputer.

Looking ahead, Arm expects continued growth, projecting fourth-quarter revenue between $1.175 billion and $1.275 billion.

Price Action: Arm Holdings PLC closed at $173.26 on Wednesday, rising 6.82% for the day. However, in after-hours trading, the stock dropped to $162.37, losing 6.29%. Despite the after-hours decline, Arm has surged 137.41% over the past year, according to data from Benzinga Pro.

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