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…packaging and packaging related items and then eventually now people talk about how it's memory and things like that that are in some sense limiting to certain systems being built at sufficient scale. Uh do you have a view of what is the next sort of bottleneck that's coming? I think building out the data centers is is going to be a bottleneck. And and when I say building out, um if you look at all the projects that are being done today, um not a lot of them are ahead of schedule uh and needing less labor than they thought, right? And then when you when you layer on top of that a lot of buzz that's coming from different parts of the of the of the country in the United States here relative to slowing down data center development or putting restrictions around it. I think that uh infrastructure buildout uh could be a headwind just relative to to everything going on which may be you know end quote okay because if it was if if infrastructure buildout was not a headwind uh I think capacity for wafers capacity for memory that probably would be a would be a headwind so I think you're going to see a number of different governors if you will not governors of states but different things that are going to throttle the growth of this uh which just expounding for a second I've been on a bunch of panels and I get a lot a lot of questions about AI bubble and when's it going to stop and there's setting aside the valuation bubbles which is a a stock market index component the the bubble in terms of are we over um over supply to demand not even close and I think again that's because the demand is insatial just given the way these models work >> and infrastructure buildout access to wafers access to memory all of that's combining >> uh you mentioned that Um and I think a lot of companies are learning today that um strategic use of the cap table, access to capital in an era where you either need to consume a lot of compute or you need to put a lot of capex into the ground or you're just doing big technical projects like coming up with um uh CPU IP. You run SoftBank Group International. You have this one dominant shareholder. ARM itself as a business is just like a beautiful cash flow machine from the outside, right? I I'm sure you think a lot about like the the leverage of SoftBank and how to use that well like what advice do you have for entrepreneurs navigating these capex intensive industries from where you sit? >> Yeah. So, one of one of the benefits we have uh at ARM uh publicly traded, yes, uh but a very very large uh single shareholder. So I have lots of informal investor meetings with my chief shareholder you know all the time about this. Uh we have a big advantage in that uh there's a lot of things symbiotically we can do together that can help ARM advance its initiatives by having Soft Bank as our largest shareholder that we look to be very very um innovative around. uh to your point in terms of you know young companies I would say strategic partnerships incredibly early uh whether it's with people inside the supply chain uh people in private equity you the banks the banks themselves it's a different game you know now on one say strategic partnerships incredibly early uh whether it's with people inside the supply chain uh people in private equity you the banks the banks themselves it's a different game you know now on one hand semis are kind of back because you you now have a a wave of semiconductor startups u there was a long time where that was just not happening uh investment in the industry now we've got a lot but access to capital is going to be the the the gate for them in terms of how they how they get through that. So I think getting much more creative in terms of how they work with the ecosystem is going to be super super key. And we at and we at SoftBank that's one of the things we look at very strategically you know companies that we can bring in into the portfolio that we can help uh that we can provide combination of either uh the backs stop you know andor if you think about SoftBank we just announced we being SoftBank a SoftBank Neo uh which is our intent to become a uh a neocloud and in that world we could become a home for these young companies who have uh chip technology that in other worlds they'd have to go up and figure out how to get a design win at Microsoft or Google. Uh we can provide a lot of interesting avenues for that. >> Can you talk a little bit more about the portfolio things that Paul under your purview at SoftBank? I I know as mentioned there's ARM and then there's uh this sort of broader suite of things. So I'd love to hear we'd love to hear more about what else >> you're responsible for and we had some specific questions for some of those as well. >> Yeah. So the way the way to think about it is uh SoftBank Group which is uh headed in Japan and and and that is MASA uh have a lot of different operating companies underneath them. One of the largest ones is SoftBank KKK which is essentially SoftBank SoftBank mobile. Uh inside the US uh there's a lot of investment activity that's going on uh with SoftBank Group International. There's SoftBank Vision Fund. uh but increasingly a lot of the strategies that we're trying to do around SoftBank is helping the strategies that Masa talked about publicly at uh at the his uh shareholder meeting in Japan which is around robotics, open AAI, infrastructure and ARM. So I probably got my eyeballs on on a lot of stuff uh to be honest with you in terms of helping MASA really realize the the execution of that vision. So yes, I I I'm leading the direction of Ampier and Graphcore and uh another company called Stack AV that's doing things around autonomous. But maybe a better way to think about it, Elad is that I'm kind of in the room on a lot of discussions that Moss is having uh and helping him sort of formulate that strategy and and more importantly help execute it. Mhm. >> How does um how has uh being part of the soft bank group or working with all these different companies or even SP energy and the and um the broader ecosystem changed your point of view on what you can do with ARM? Well, one thing it does, it gives us a a huge uh bird's eyee view relative to uh where the broader industry is going, whether it's around infrastructure, whether it's around capital, whether it's around ll, one thing it does, it gives us a a huge uh bird's eyee view relative to uh where the broader industry is going, whether it's around infrastructure, whether it's around capital, whether it's around energy, but also you can imagine it could provide a home for for our products, right? So, it it doesn't need to be the home, but it certainly can be a home. Uh which is also a big, you know, a big help. Uh when we think about the verticals that SoftBank's involved with robotics, energy, data center infrastructure, and then you look at the products that ARM has, the only one we've announced so far is the ARM AGI CPU. You can start to connect the dots and say, gosh, there could be some very interesting opportunities that uh that could be an opportunity for ARM, which necessarily doesn't mean that we're getting into the broad merchant chip business. We could be just doing products simply back for for SoftBank. We're a couple years into um you know serious efforts in more uh generalized robotics at this point, right? If you compare it to like about a decade for um LLMs, there's increasingly interesting demo results from companies on generalization of task and environment, more robustness, maybe even in context learning, but not like widescale deployment quite yet. >> Um first, would you agree with that characterization? Yeah. >> What predictions do you have about the uh robotics market and um any opportunity for ARM there? >> Oh, well, broadly speaking, uh I think the whether it's humanoids or or dedicated uh machines to do certain level of tasks that can be retrained is going to be enormous, right? And the the robotics 1.0, zero, which is a purpose-built industry. Uh you had piece of mechanics designed to do a certain task and the software that was optimized for that task. If you had to a brand new automobile line came up or some different piece of equipment, if the robots weren't well suited for that, rip up the line, etc., etc. So, as as you can imagine, then the the barrier was was pretty high. getting to a world where the the robots can learn just based upon either being trained or what they see and then when you then combine that with can you design something mechanically general purpose enough that can take advantage of being reprogrammed and then when you layer on top of that the cost coming down you look at and say oh my gosh what what will it not be able to do so it's almost like something out of the Jetsons right where a lot of things will ultimately be done by robots uh construction, infrastructure, service, security. You know, right now you see a lot of stuff on Instagram or Tik Tok of Olympic races with robots, etc., etc. I don't think anyone's going to have any interest in watching a sports league of of robots. There may be an enthusiast class >> who who might be interested in that, but the the broader utility is going to be around uh a lot of human labor tasks um that will can ultimately easily be replaced by robots. There's no question. A lot of the hypothesis people have about the form factor of robotics tends to split into two or three camps. One of the camps is that they're going to be uh humanoid or roughly sort of the human…

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