Jason Child on AI pricing
From EP. 11 | How Arm's CFO Sees the Future of AI and Infrastructure | Human Capital Gains · · Human Capital Gains Podcast
“I think the problem will largely sort itself uh over time and possibly in near term as uh I think the vinyl companies are going to start rationalizing the pricing probably based on usage. They are to some extent today but they haven't done much yet. They're obviously very very focused on just gaining adoption as much as possible and I think they're following kind of the old school of you know do the premium model and offer as much capability as possible for free uh and try to you know reduce any sort of friction and economic uh kind of um friction especially to get usage and then once you get more data once you get more usage you get more understanding more buying that kind of creates that virtual cycle of usage and then that's probably when you know in other words when when you're hooked That's when pricing will probably start to become I mean we heard the what CFO of OpenAI talk about how they might be you know asking for a cut of the revenue of whatever you know solutions they you know and outcomes they create through AI uh which you know caused a little bit of a of a hey moment but uh it it seems obvious to me that that it's some some version of that is probably what happens over time anyways.”
On , Jason Child, Executive VP & CFO at Arm Holdings, spoke about AI pricing during EP. 11 | How Arm's CFO Sees the Future of AI and Infrastructure | Human Capital Gains on Human Capital Gains Podcast.
About Jason Child
Jason Child, executive vice president and CFO of Arm Holdings, discussed the company's position in the AI infrastructure market during a May 2026 podcast interview. He described Arm as providing "the CPU of choice" for hyperscalers and core infrastructure providershol, and noted that the company is preparing its business to serve customers amid what he called a "significant infrastructure shift." Child distinguished current AI from earlier machine learning, stating that past recommendation algorithms were "not really intelligence" but that newer models are "getting really close to actually having some true intelligence." He advised companies to designate a person or team as an expert funnel for enterprise-grade AI solutions rather than allowing broad experimentation. On Arm's Q4 fiscal 2026 earnings call in May 2026, Child reported that data center royalty revenue "continues to more than double year-on-year," driven by arm-based server chips from major hyperscalers and data center networking chips where Arm has "close to 100% market share." He stated that the company now sees "more than 2 billion dollars of customer demand" for its Arm AE GI CPU across fiscal 2027 and 2028, double the amount cited at launch, and reiterated a target of $15 billion in revenue from that business by fiscal 2031. Child also projected total revenue of $25 billion by fiscal 2031, comprising $15 billion from the AGI CPU business and $10 billion from IP revenue, translating to "more than $9 in EPS."