move AI workloads from cloud to reduce power consumption

Arm Holders CEO Rene Haas told CNBC’s Jim Cramer on Wednesday that moving some AI functions away could help reduce energy use.

Over time, he suggested, multiple gigawatt data centers would not be sustainable.

“Look at yourself, what kind of things need to happen? I think there are two vectors to this,” Haas said. “One is low power, the lowest power solution you can get in the cloud. Arm has a real hand in that. But I think more specifically it’s moving AI workloads from the cloud to native applications.”

While he says AI training will likely always happen in the cloud, the execution of AI, called inference, can happen locally—on the chips inside people’s phones, computers, and glasses. According to Haas, history has shown that “we are always moving towards hybrid models of computing.”

He suggested that hybrid dynamics will emerge when it comes to artificial intelligence, which will help alleviate large power investments.

Chip designer Arm’s technology powers devices produced by a number of major Big Tech players, including: Microsoft And Amazon. semiconductor giant Nvidia It owns a large stake in Arm and actually tried to buy the company in 2020.

arm and Meta on wednesday in question According to a press release, they will expand their partnership to “scale AI efficiency across every computing layer spanning AI software and data center infrastructure.” After the announcement, gun stocks rose and finished the day with a 1.49% increase.

Haas told Cramer that the partnership with Meta is “largely around data centers, but more broadly around software and its associated software stacks.” He also discussed Arm’s involvement in Meta’s new Ray-Ban Wayfarer glasses, saying the technology’s AI works both in the cloud and locally.

“For example, when you say ‘hey, Meta’ to those glasses, it doesn’t happen on the cloud, it actually happens on your glasses, and it works on Arm,” Haas said.

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Disclaimer CNBC Investing Club Charitable Trust owns shares of Meta, Microsoft, Amazon and Nvidia.