Arm Holdings anticipates its data center CPU market share to surge from 15% to 50% by late 2025, driven by AI computing demands. The company's CPUs, which serve as "host" chips in AI systems including Nvidia's Grace-Blackwell configurations, are gaining traction due to their superior power efficiency compared to Intel and AMD alternatives. Mohamed Awad, Arm's infrastructure chief, notes that major cloud providers like Amazon, Google, and Microsoft are increasingly adopting Arm-based processors, with Amazon already using Arm technology for over half of its recent chip capacity additions.