Our business model has two main components: licensing access to our technology and royalties based on chip usage, which is critical since every digital device relies on Arm's architecture.
The challenge lies in designing CPUs that can support legacy software while accommodating new AI applications. This creates immense pressure for continuous innovation and upgrades.
AI software is outpacing current hardware capabilities, necessitating a significant upgrade cycle for chips designed years prior to the new models. This leads to an evolving demand for compute power.
With 99% of premium smartphones utilizing Arm CPUs, the software ecosystem built around our architecture makes switching to another CPU a daunting task for manufacturers.
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