Arm’s Co-Founder Predicts AI as the Next Big Revolution
Arm’s co-founder, Hermann Hauser, asserts that Artificial Intelligence (AI) will create more value than any previous revolution and describe it as a "rollercoaster." His concern is not the end of the boom but rather the risk of Europe becoming a technology colony of the US.
August 14, 2026 – 2:51 pm | Credit: Amadeus Capital Partners
Hauser recently sat down with CNBC’s The Tech Download podcast, where he shared his insights on AI, semiconductors, quantum computing, and European sovereignty. The full interview, lasting 40 minutes, is available as a video episode.
His Track Record Speaks Volumes
With a resume that includes co-founding Acorn Computers in 1978 and helping establish Arm, Hauser’s perspective on the current AI wave carries significant weight. As an investor in European deep-tech startups through Amadeus Capital, his experience spans four decades of technology trends.
A Revolution and a Rollercoaster
Hauser believes AI represents "a revolution that will create more value than probably any other technology revolution that we’ve ever seen." He uses the term "rollercoaster" to describe its potential impact, acknowledging that while some valuations have gotten ahead of themselves, the structural risks are more concerning.
Circular Financing and Structural Risks
One specific risk Hauser highlights is circular financing, where chipmakers invest in AI labs that then purchase their chips. The Bank for International Settlements raised alarms about this practice in June, suggesting it could expose credit markets to significant strain if an AI bust occurs.
Hauser, however, argues that the largest players are likely to survive a market reset. OpenAI and Anthropic, with substantial capital reserves, would be resilient, even if expectations around them adjust.
Separating Technology and Pricing Debates
In contrast to claims that AI is a bubble or blasphemy, Hauser takes a nuanced approach. He distinguishes between the validity of the technology and the speculative nature of some valuations, offering a more balanced perspective.
The Impact on Computing Architecture
One of the most intriguing aspects of Hauser’s discussion revolves around AI’s potential to revolutionize computing architecture. As an architect of the chips inside many phones, his insights carry weight.
He highlights two responses to the challenges posed by AI: in-memory computing and photonic computing, both aiming to reduce energy consumption by minimizing data movement between processors and memory. These advancements could rival the impact of architectural breakthroughs that led Arm to challenge established chipmakers.
The Future of AI and Technology
Hauser’s commentary on AI and its implications is a thought-provoking read, offering insights into the future of technology while acknowledging the complexities and uncertainties inherent in any revolution.