The CEO of Arm Holdings Plc ARM has suggested that NVIDIA Corporation’s NVDA Grace Blackwell could lead to a significant uptick in the adoption of ARM technology in data centers for AI applications.
What Happened: “I think now with NVIDIA’s most recent announcement, Grace Blackwell, you are going to see an acceleration of ARM of the data center in these AI applications,” ARM CEO Rene Haas said during the company’s fourth-quarter earnings call on Wednesday.
He went on to explain that the integration of ARM CPUs with NVIDIA GPUs in designing the chips like Grace Blackwell, allows for a more efficient interconnect between the CPU and the GPU, resulting in significantly higher memory access.
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“In a conventional system where you might connect to an X86 externally, you have to do that over a PCI bus, which is much slower. So by using a custom bus in the NVIDIA example like NVLink, you get much higher memory bandwidth,” Haas stated.
The CEO of ARM Holdings concluded by suggesting that the increased integration of ARM architecture in data centers for AI applications will likely lead to a faster adoption rate than initially projected, although official confirmation is currently unavailable.
Why It Matters: The Grace Blackwell chip, which was unveiled by NVIDIA earlier this year, has been predicted to drive the next wave of AI innovation. Previously, NVIDIA CEO Jensen Huang informed that tech giants like Alphabet Inc., Amazon.com Inc., Microsoft Corporation, and Oracle Corp are also “gearing up for Blackwell.”
Meanwhile, Arm Holdings reported better-than-expected fourth-quarter results, with a record royalty revenue and strong license revenue. The company announced quarterly earnings of 36 cents per share, surpassing the analyst consensus estimate of 30 cents by 20%. Quarterly sales amounted to $928 million, exceeding the analyst consensus estimate of $875.59 million by 5.99%.
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