CEO of Arm, Rene Haas, talks about competition in AI chips, Intel, and the impact of Trump on the tech sector.
The ubiquitous chip designer analyzes what the remarkable pace of artificial intelligence implies for the future.
Recently, I had the opportunity to interview Rene Haas, CEO of Arm, a company dedicated to chip design. The conversation took place at an event in Silicon Valley organized by AlixPartners and is now available to listen to. Rene is an intriguing figure in the tech industry, having previously worked at Nvidia and now leading Arm. This has allowed him to witness how the industry has evolved from desktop computers to the mobile era, and how artificial intelligence (AI) is marking a new shift.
Arm has played a crucial role in these transformations, designing important chips that power products from companies like Apple, as well as electric vehicles and AWS servers that are fundamental to a significant part of the Internet. In a previous interview, Rene expressed that Arm was like "Switzerland in the electronics industry" due to the widespread adoption of its designs. However, the business dynamics are changing with the rise of AI, something we discussed in depth during the conversation. There are rumors that Arm is considering not only designing but also manufacturing its own AI chips, which would put it in direct competition with some of its major clients.
When Rene appeared in a previous conversation, he was just six months into his role as CEO, shortly after a failed $40 billion acquisition offer from Nvidia for Arm. He subsequently led the company through a highly successful initial public offering (IPO), especially for its main investor, SoftBank.
During our chat, I also addressed Arm's relationship with SoftBank, mentioning the unique character of its CEO, Masayoshi Son. Additionally, I asked him about the challenges Intel is facing. It has been reported that Rene considered acquiring a part of Intel recently and I wanted to know his opinion about the future of the company that has gone through difficulties.
The conversation extended to topics of politics, the incoming administration in the U.S., tensions between the U.S. and China, and the impact of potential tariffs. Although Rene is the CEO of a public company and needs to be cautious in his responses, each of his opinions is insightful.
Rene mentioned that throughout his career, he has sadly observed the challenges Intel has faced and highlighted the need for innovation in the industry. He addressed Intel's strategy and suggested that vertical integration could be a solution, although the associated costs and risks are high.
We also discussed the potential for collaboration between Intel and Arm. While he avoided commenting on acquisition rumors, Rene emphasized the importance of closely working with companies like TSMC and Samsung to ensure they have access to the most advanced technology.
Regarding Arm's strategy in China, Rene stated that it has remained virtually the same, although he has noted a slowdown in the startup market due to changes in access to capital and key technology. However, growth in the automotive sector remains strong.
On U.S. politics and the Biden administration's efforts with the CHIPS Act, he expressed that having a more robust domestic production is vital, but also highlighted the importance of having the right talent in the country to drive this growth.
The dialogue also touched on how AI is integrated into current products and the growth of the market for devices like mobile phones. Although there doesn't seem to be a significant breakthrough at the moment, Rene suggested that this could change rapidly as technology and software develop.
Finally, we talked about his vision for the future of Arm and the potential of new forms of devices, such as wearables and AI products. While rumors about Masayoshi Son's work with OpenAI and others are in the air, the conversation about how Arm can grow and innovate in the future is promising.