Arm Holdings launched the Arm AGI CPU, its first in-house chip designed for data center AI workloads. This marks a historic shift from the company’s 35-year model of exclusively licensing architectures. Arm developed the processor with Meta, which will serve as the first customer. Meta plans to deploy the chip alongside its existing AI accelerators.
The move places Arm in direct competition with its own licensing partners and major data center chipmakers. The AGI CPU optimizes large-scale AI infrastructure by managing memory, workload scheduling, and data movement. Rapid growth in the AI sector drove this transition into physical chip manufacturing.
Arm shares surged 15% following the announcement. The company projects its entry into physical silicon will generate $15 billion in annual revenue. Management expects to reach this revenue target within five years. The chips are currently production-ready and available for order.