{"text":[[{"start":9.3,"text":"Arm on Wednesday said demand for its new AI chip would drive $2bn in sales in 2027 and 2028, the first sign of the pay-off from a shift into selling its own chips as it reported earnings that disappointed investors."}],[{"start":23.85,"text":"The SoftBank-backed UK chip designer reported revenue of $1.5bn in the quarter to the end of March, roughly in line with Wall Street estimates. It said it expected $1.26bn for the current quarter, slightly above the $1.2bn expected by analysts."}],[{"start":42.55,"text":"Chief executive Rene Haas said demand for Arm’s first data centre chip had “exceeded expectations, reinforcing Arm as the compute platform for the AI era”."}],[{"start":52.25,"text":"The $2bn forecast doubles what the company had guided for the same period at the launch of its chip about a month ago. The stock initially jumped in after-hours trading before falling around 8 per cent."}],[{"start":64.35,"text":"The company reported $671mn in revenue from the royalties it receives on products using its intellectual property, slightly below the $700mn expected by analysts, according to Visible Alpha. "}],[{"start":76.75,"text":"The global smartphone market, which is dominated by Arm’s chip designs, has contracted this year due to a severe shortage of memory chips caused by demand from data centres."}],[{"start":86.5,"text":"But its licensing revenue was $819mn, above the $775mn analysts expected, which Arm attributed to demand for its AI chip designs. "}],[{"start":98.2,"text":"Arm and other chip companies, such as Intel and AMD, have all benefited from surging demand for central processing units. These chips were less in demand during the earlier stage of the AI boom, and clients rushed to buy Nvidia’s graphics processing units to train AI models. "}],[{"start":115.95,"text":"CPUs are now increasingly sought after to help run AI applications. Arm said on Wednesday that CPU demand was set to quadruple."}],[{"start":125,"text":"Arm’s results followed AMD reporting strong results on Tuesday. AMD’s shares rose around 18 per cent on Wednesday after chief executive Lisa Su doubled her prediction for AI CPU market growth into 2030. "}],[{"start":139.2,"text":"Arm shares have more than doubled in value since the start of the year, helped by the company’s long-awaited announcement of its own AI processor chip in March."}],[{"start":148.64999999999998,"text":"Arm’s move from offering intellectual property for other chip designers to offering its own complete AI chip marked a big shift, raising the potential for the company to grab a much larger share of the global market in data centre infrastructure. "}],[{"start":164.14999999999998,"text":"Haas predicted in March that the new chip would drive a fivefold increase in revenue over the next five years."}],[{"start":171.09999999999997,"text":"But the launch of the “AGI CPU” will also pit Arm against its own customers such as Nvidia, Google and Amazon. It comes as SoftBank chief executive Masayoshi Son pushes ahead with “Project Izanagi”, an effort to create a challenger to Nvidia. "}],[{"start":187.29999999999995,"text":"Last month, Haas was appointed chief executive of SoftBank’s international group, as the FT previously reported. "}],[{"start":201.64999999999995,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1778126374_4571.mp3"}