Arm Holdings launched the Arm AGI CPU, its first in-house semiconductor. This marks a strategic shift in the company's 35-year history. The move transitions Arm from licensing architecture to selling proprietary silicon, placing it in direct competition with existing data center clients.
Meta is the first major customer for the chip. TSMC will manufacture the new processor. The AGI CPU optimizes memory and data movement to support AI accelerators. Arm shares rose more than 10% in pre-market trading following the announcement.
The new chip business aims for $15 billion in annual sales. Arm expects to reach this goal within five years. The company targets $25 billion in total annual revenue by that time. Wall Street expects the move to revalue Arm as an AI hardware giant.