Apple and Arm sign deal for chip technology that goes beyond 2040

Published

2 years ago

September 6, 2023

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Components manufactured by Arm sit inside a demonstration ARMmbed parking meter on display on the second day of Mobile World Congress in Barcelona, Feb. 28, 2017.

Pau Barrena | Bloomberg | Getty Images

Apple has struck a deal with Arm through 2040 and “beyond,” Arm said in a U.S. Securities and Exchange Commission filing Tuesday.

The news indicates that Apple has secured access to a core piece of intellectual property, the Arm architecture, used in its iPhone and Mac chips, for the foreseeable future.

Arm, owned by SoftBank, is set to debut on the Nasdaq stock exchange in the coming weeks at a total valuation that could be as high as $52 billion, which would be the biggest technology initial public offering this year.

For Arm, its note about the Apple deal indicates that at least one of its most important partners will continue to use the company’s technology for years, quelling some fears that the change in Arm’s corporate structure could prompt some of its customers into looking for technological alternatives.

“Further, we have entered into a new long-term agreement with Apple that extends beyond 2040, continuing our longstanding relationship of collaboration with Apple and Apple’s access to the Arm architecture,” Arm said in its updated SEC filing.

Arm’s architecture is used in nearly every smartphone chip, including Apple’s A-series for iPhones. Arm’s instruction set outlines how a central processor works at its most basic level, such as how to do arithmetic or access computer memory. Switching large software projects to other instruction sets is expensive, difficult and time consuming.

Arm, originally founded in 1990, started growing fiercely after the iPhone came out in 2007 and smartphone makers needed chips that were geared for low-power usage, especially compared with the x86 architecture used in PC and server chips by Intel and AMD.

Cornerstone investors

One reason firms such as Apple use Arm’s architecture is because it has not been owned by a competitor. Arm, a British company, licensed its technology to all comers, and its customers could plan to invest billions in developing Arm chips without worrying that their access to the technology could be curtailed.

The company said 230 billion chips have shipped using Arm’s architecture, although about half the company’s royalties revenue comes from products released between 1990 and 2012, according to the filing.

Concerns over access to Arm technology is one of the main reasons regulators blocked Nvidia’s bid to buy Arm early last year, leading to this fall’s IPO.

Apple, Google, Nvidia, Samsung, AMD, Intel, Cadence, Synopsis, Samsung and Taiwan Semiconductor Manufacturing Company have expressed interest in buying some Arm shares as part of the offering, as much as $735 million in total according to the filing, which would give those companies a stake in Arm’s ownership and some say in how it is managed. They’re referred to as “cornerstone investors.”

An Arm representative declined to comment and referred to the SEC filing. Apple representatives didn’t immediately respond to CNBC’s request for comment.

Technology

Airbnb beats on top and bottom lines for second quarter

Published

2 hours ago

August 6, 2025

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Airbnb beats on top and bottom lines for second quarter

Cheng Xin | Getty Images

Airbnb reported second-quarter results on Wednesday that beat analysts’ expectations.

Here’s how the company did based on average analysts’ estimates compiled by LSEG:

Earnings per share: $1.03 vs. 93 cents expected
Revenue: $3.10 billion vs. $3.04 billion expected

Revenue increased 13% from $2.75 billion during the same period last year. The company reported net income of $642 million, or $1.03 per share, up from $555 million, or 86 cents per share, a year earlier.

In the third quarter, Airbnb expects to report revenue of $4.02 billion to $4.10 billion, or $4.06 billion in the middle of the range. Analysts were expecting $4.05 billion for the period, according to LSEG.

In a letter to shareholders, the company said it had a strong second quarter, even against a volatile macroeconomic backdrop. U.S. President Donald Trump’s sweeping tariff and trade policies plunged markets into chaos for much of April.

“Despite global economic uncertainty early in the quarter, travel demand picked up, and nights booked on Airbnb accelerated from April to July,” the company said.

Airbnb reported 134.4 million nights and seats booked, up 7% from a year ago and above the 133.35 million expected by StreetAccount.

Gross booking value, which Airbnb uses to report host earnings, service fees, cleaning fees and taxes, totaled $23.5 billion in the second quarter. That figure is above the $22.66 billion expected by analysts polled by StreetAccount.

Airbnb said it received authorization for new share repurchase program of up to an additional $6 billion of Class A common stock. The company said it repurchased $1 billion of Class A common stock during the second quarter, and previously had authorization to purchase $1.5 billion more as of June 30.

Airbnb shares were down slightly in extended trading. They’ve slipped 0.7% for the year as of Wednesday’s close, while the Nasdaq is up almost 10%.

Airbnb will hold its quarterly call with investors at 4:30 p.m. ET.

WATCH: Airbnb CEO Brian Chesky on AI

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Technology

DoorDash shares rise on earnings, revenue beat

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2 hours ago

August 6, 2025

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DoorDash shares rise on earnings, revenue beat

Doordash food delivery service in New York City on Feb. 13, 2025.

Danielle DeVries | CNBC

DoorDash shares climbed about 5% in extended trading on Wednesday after the food delivery company reported better-than-expected earnings and revenue for the second quarter.

Here’s how the company did compared to analyst estimates based on LSEG’s consensus:

Earnings per share: 65 cents vs. 44 cents expected
Revenue: $3.28 billion vs. $3.16 billion expected

Revenue jumped 25% from $2.63 billion a year earlier, DoorDash said in a press release. The company reported net income of $285 million, or 65 cents a share, after recording a loss of $157 million, or 38 cents per share, in the same period a year ago.

Orders increased 20% from a year earlier to 761 million. Gross order value (GOV) rose 23% to $24.2 billion.

DoorDash shares have soared 54% this year as of Wednesday’s close, lifting the company’s market cap to $109 billion. The Nasdaq is up almost 10% in 2025.

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Doordash one day stock chart.

Delivery and rideshare stocks have strong demand and growth, says Bernstein's Nikhil Devnani

Technology

Amazon’s Zoox robotaxi unit clears regulatory hurdle, safety probe

Published

3 hours ago

August 6, 2025

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Amazon’s Zoox robotaxi unit is ramping up vehicle production at a new facility in Hayward, California.

Zoox

Amazon‘s Zoox has cleared a key regulatory hurdle, paving the way for demonstrations of its self-driving robotaxis.

The National Highway Traffic Safety Administration said Wednesday that it granted Zoox an exemption from some requirements, a first for U.S.-built vehicles under a recently expanded program.

“Transportation innovators can be confident in getting speedy review of their vehicles and, as appropriate, exemption from Federal Motor Vehicle Safety Standards,” NHTSA Chief Counsel Peter Simshauser said in a release.

The company must remove all existing statements that its purpose-built vehicles meet all federal motor vehicle safety standards.

As part of the announcement, NHTSA said it’s closing a probe opened in March 2023 into Zoox’s self-certification that its robotaxi met federal safety standards.

“Through this new exemption process, we are excited to embark on this new path, put these discussions behind us, and move forward,” Zoox said in a statement.

The Department of Transportation in April announced it would expand a program that aims to speed up the autonomous vehicle exemption process to include domestically produced vehicles. Previously, it was limited to imported AVs.