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Speaker 1: We are standing by with a pretty key guest for

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Speaker 1: a day like today.

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Speaker 2: That is ARM CEO.

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Speaker 1: Renee has with our own Caroline High Caroline.

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Speaker 2: It's great to be here with Renee, the CEO of ARM.

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Speaker 2: It is your day, Renee, talk to us about the

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Speaker 2: amount of emails, phone calls, text messages, celebrations, the Cambridge

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Speaker 2: part of your company going berserk? How does it feel?

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Speaker 1: Oh gosh, what an exciting day. You know, I'm hearing

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Speaker 1: from high school friends I have not talked to in

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Speaker 1: a long time, who are saying you never told me,

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Speaker 1: I think as we're watching this on TV. But most

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Speaker 1: of all, I'm so thrilled for the employees of ARM,

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Speaker 1: thirty three year old company, great heritage. But watching all

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Speaker 1: the employees in Cambridge celebrate simultaneously, that was magical and

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Speaker 1: they might continue to celebrate as we see what seventeen

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Speaker 1: eighteen percent increase?

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Speaker 2: How has that journey of going out to investors the

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Speaker 2: road show, the story that you've been able seemingly to

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Speaker 2: successfully sell the fact that you're trading well on this day?

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Speaker 2: What was the vision they wanted to hear? Revenue growth?

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Speaker 2: I hear of eleven percent up to twenty five percent

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Speaker 2: in the next couple of years. What drives you.

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Speaker 1: I think it was a great process. Investors really wanted

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Speaker 1: to understand the opportunity we had in front of us,

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Speaker 1: and of course AI, which you can't really talk about

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Speaker 1: our industry without talking about AI. And I think helping

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Speaker 1: them understand that you can't really run AI without ARM

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Speaker 1: without a CPU, and just pointing out to them that

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Speaker 1: it's in everywhere, in every device that people touch, was

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Speaker 1: a big part of the process for us.

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Speaker 2: Because everyone has made the equivalent of your a smartphone,

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Speaker 2: it's completely absorbed, more than ninety percent of phones is

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Speaker 2: where your CPUs are. But the design, the fact that

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Speaker 2: you now want to be integral to data centers, and

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Speaker 2: they're like, how certain are you on the revenue vision,

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Speaker 2: on the profitability vision, even though we see concerns about

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Speaker 2: macro environment still and whether or not we're in an

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Speaker 2: AI hype cycle.

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Speaker 1: Yeah, so AI is everywhere, and if it's your edge

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Speaker 1: device like the Assistant or the Alexa or your autonomous vehicle,

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Speaker 1: that's all AI. And now we're seeing it in the

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Speaker 1: cloud and the data center. With all the growth with

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Speaker 1: Nvidia in VideA announcing one of their newest products, grace

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Speaker 1: Hopper that is based on ARM, so ARM is everywhere

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Speaker 1: relative to AI. We also have a very unique business

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Speaker 1: model that gives us the ability to have a very

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Speaker 1: very good vision in the future in terms of when

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Speaker 1: people use our products. So relative to our confidence in

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Speaker 1: the outlook, we have a very very high confidence that

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Speaker 1: the growth rate that we have talked about will be sustained.

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Speaker 2: How word were investeds about China and your exposure.

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Speaker 1: I think there were a lot of questions, as you

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Speaker 1: can imagine about China in general, given all the geopolitics.

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Speaker 1: Our business there looks a lot like the rest of

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Speaker 1: the world. We have great growth in the data center,

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Speaker 1: we have great growth in automotive. China's huge on electric vehicles,

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Speaker 1: so it's been terrific there for us. I have the

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Speaker 1: same kind of headaches that every other tech CEO has

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Speaker 1: regarding how to navigate through this, but no different.

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Speaker 2: Do you think there will be more pressure now that

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Speaker 2: you're public again? Ultimately? I mean, you came to ARM

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Speaker 2: in twenty thirteen, you were listed at that point, but

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Speaker 2: it's not Bean Sin's twenty sixteen that you have been

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Speaker 2: How does the game change as a leader of that

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Speaker 2: business now?

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Speaker 1: Yeah, I think there's some things that we were able

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Speaker 1: to do as a private company that will just be different. Right,

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Speaker 1: quarterly earnings, making sure that we hit all our commitments.

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Speaker 1: But ARM is not a business you measure from quarter

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Speaker 1: to quarter. You measure us over years and decades, and

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Speaker 1: the long term vision is something that I am very,

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Speaker 1: very passionate about, and we'll continue to drive the company

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Speaker 1: the same way private or public.

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Speaker 2: You have a lot of key vested interests, whether they

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Speaker 2: be your clients, Apple, TSMC and tel taking big stakes

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Speaker 2: in the company today. How important are those voices? Visa

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Speaker 2: the masses the head of soft Bank. I'm sure you're

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Speaker 2: on the phone too daily.

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Speaker 1: Yeah. So one of the challenges of our industry, im

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Speaker 1: prely with with ARM is that the fact that we're everywhere.

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Speaker 1: None of this works unless we play nice with others.

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Speaker 1: So we have to have a lot of engagements with

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Speaker 1: strategic partners and making sure that we're managing that balance,

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Speaker 1: including Masa, our chief shareholder.

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Speaker 2: Do you think he lets more of ARM become public?

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Speaker 2: Is that something you'd like to see you?

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Speaker 1: Massa and I talk quite frequently, But it's really not

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Speaker 1: about the day to day. It's about the long term vision.

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Speaker 1: The passion that he and I have about the future

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Speaker 1: and really about what this company it can be long term.

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Speaker 1: So I don't expect that to change being a public company.

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Speaker 2: Do you think you go public in the UK? I'm

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Speaker 2: sure it's been a bit of sweet for the London

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Speaker 2: Stock Exchange today.

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Speaker 1: Yeah. So today, obviously we're in New York, but we're

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Speaker 1: incredibly proud of our UK heritage and we are opening

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Speaker 1: to considering that down the road.

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Speaker 2: Okay, any sort of time frame for that.

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Speaker 1: None that we can talk about today. I'm trying to

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Speaker 1: get through today a little.

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Speaker 2: Bit well before you get through today. In that respect,

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Speaker 2: investors do love all things regarding artificial intelligence. But how

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Speaker 2: have you managed to land that your story is different?

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Speaker 2: People have been so exuberant about Nvidia, where you used

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Speaker 2: to work, but they're really exuberant about GPUs. How have

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Speaker 2: you said that you are able to claim a larger

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Speaker 2: royalty share of how AI continues to be said?

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Speaker 1: Yeah. So one of the benefits of the road show

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Speaker 1: was spending a lot of time with the investors talking

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Speaker 1: about AI and where we fit. And I think one

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Speaker 1: of the misconceptions is that a GPU can run without

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Speaker 1: a CPU, which is just not the case, the CPU

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Speaker 1: is central to every electronics device and there are devices

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Speaker 1: that chip with a CPU and a GPU. So once

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Speaker 1: investors kind of got that, then explaining where the puck

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Speaker 1: was going relative to gosh and vidia's next generation host

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Speaker 1: advanced product, grace Hopper, is using ARM CPUs instead of

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Speaker 1: the competition, the light bulb went on that, Oh my gosh,

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Speaker 1: you need the CPU. And at the same time, in

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Speaker 1: Video has made a big bet on ARM in their

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Speaker 1: most sophisticated product, and once that message kind of sunk

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Speaker 1: through people, the light bulb went on as, oh my gosh,

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Speaker 1: I get it.

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Speaker 2: There has been this moment though, at which we're trying

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Speaker 2: to understand how the landscape works with global demand and

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Speaker 2: that translating into revenue. When you think of Oracle's numbers

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Speaker 2: that came in and look, they delivered thirty percent increase

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Speaker 2: and it comes to their cloud provision and their AI bet,

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Speaker 2: but it doesn't always immediately turn into revenue in the

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Speaker 2: here and the now. How convinced are you that it

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Speaker 2: is going to be in the bottom line evident in

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Speaker 2: the next coming quarters.

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Speaker 1: As far as AI, oh, I think it's un questionable

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Speaker 1: that AI, which has already been here right for a

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Speaker 1: number of years. The Chat cheap D moment taught us that,

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Speaker 1: oh my gosh, the capability of what this can do

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Speaker 1: going forward has gone up a level. And I think

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Speaker 1: we've seen that over and over in our industry. There

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Speaker 1: tends to be lightning bolt moments that greatly accelerate the

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Speaker 1: adoption of technology. And I think with AI, as you

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Speaker 1: move towards AGI computers that can think, I think we

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Speaker 1: now have seen an accelerant for that. Ultimately down the

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Speaker 1: road how people make money off that. It'll get figured out.

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Speaker 1: But AI is here to stay. That's unquestionable.

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Speaker 2: And it seems as though you're integraled to soft banks

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Speaker 2: vision of AI and Massa's vision of AI. How can

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Speaker 2: you announce it a little bit? You say, talking to

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Speaker 2: him daily, what his vision of ARM within the ecosystem

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Speaker 2: going forward really is.

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Speaker 1: He and I share a very same view that ARM

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Speaker 1: is one of the most important technology companies in our industry, foundational,

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Speaker 1: if you will, and I would like to see us

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Speaker 1: over the next five to ten years really be recognized

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Speaker 1: that way, and he and I are very aligned on that.

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Speaker 1: As you can you when you think about five to

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Speaker 1: ten years out, there's a lot of things to talk

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Speaker 1: about in terms of the art of the possible, but

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Speaker 1: that's really where he's focused on when his conversations with.

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Speaker 2: Me, long term thinking but then near term action. We

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Speaker 2: understand he was pretty integral to calling the shots on

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Speaker 2: price points for today's listing. How was that as just

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Speaker 2: an IPO experience? Did he end up being like, no,

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Speaker 2: we need to leave a little bit of money on

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Speaker 2: the table. This needs to be a successful trade.

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Speaker 1: But all I can say is this is my first

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Speaker 1: road show, so everything was altering experience. We wanted to

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Speaker 1: be at the high end of the range that we

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Speaker 1: set forty seven to fifty one, and that's where it

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Speaker 1: ended up. So we're happy. We're very thrilled with today.

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Speaker 2: You said that school friends are going to in touch

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Speaker 2: can why have you been hiding this from them? How

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Speaker 2: do you feel differently now as a CEO of a

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Speaker 2: publicly traded company? Do you feel differently today?

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Speaker 1: I feel a little bit differently in looking ahead at

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Speaker 1: this number than what the share price is. That wasn't

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Speaker 1: something we looked at before. But you know again, when

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Speaker 1: and I told this to employees, while the IPO is

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Speaker 1: amazing and I could not be more proud of it.

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Speaker 1: I am far more excited about the next five to

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Speaker 1: ten years and that's where my head is focused. Obviously

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Speaker 1: we needed things as a public company CEO, but I

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Speaker 1: don't feel too much different.

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Speaker 2: And sometimes these are marketing exercises. Armor is B to B.

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Speaker 2: But do you think you've become more relevant B to

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Speaker 2: see now you're saying how people had no idea, Well

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Speaker 2: this because largely people don't realize that every day they

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Speaker 2: are interacting with your designs, with your blueprints.

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Speaker 1: The people who need to know what we do do know. Obviously,

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Speaker 1: just giving the fact that all the global partners that

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Speaker 1: we work with going forward, how to market ourselves as

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Speaker 1: a public company, That's one of the things as a

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Speaker 1: public company CEO, I'll spend some time thinking about. But

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Speaker 1: right now we're just kind of focused on today and

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Speaker 1: what that means.

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Speaker 2: And meanwhile, within this exuberance of today, yesterday we saw

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Speaker 2: basically every key chief executive of an AI company, AI

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Speaker 2: related company indoors and a closed hearing with Senate Majority

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Speaker 2: Leader Chuck Schumer. Can you tell us about regulation? How

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Speaker 2: do you see the landscape evolving to ensure that you

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Speaker 2: can harness that AI moment?

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Speaker 1: I think it's one of those areas that is an

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Speaker 1: unknown moment. And I remember talking to an executive about

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Speaker 1: the analogy or metaphor we used was when cars were invented,

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Speaker 1: you didn't have driver's licenses, you didn't have lanes, you

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Speaker 1: didn't have rules of the road. There was a lot

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Speaker 1: of things that people had to figure out in terms

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Speaker 1: of taking a device that was going to be very

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Speaker 1: very productive but could be very dangerous in terms of

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Speaker 1: automobile accidents. AI is a little bit of the same

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Speaker 1: in the sense that we're now in a new paradigm

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Speaker 1: where some rules and regulations need to be figured out,

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Speaker 1: and that's why I think you're seeing all this activity

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Speaker 1: around that area.

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Speaker 2: Is the US leading the charge and regulation is Europe?

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Speaker 2: Is the UK is getting it right?

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Speaker 1: From your perspective, I think all the governments are trying

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Speaker 1: to figure it out. I know the EU has spent

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Speaker 1: a lot of energy on this, as had the UK.

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Speaker 1: So in terms of who's getting it right, I think

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Speaker 1: it's still early days and everyone's really just trying to

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Speaker 1: learn how technology and this new powerful algorithm will work together.

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Speaker 2: Keep teaching us. Great to have some time with you,

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Speaker 2: I have because the CEO of