Arm Holdings launched the Arm AGI CPU, its first-ever data center processor designed for agentic AI. This hardware enables advanced AI systems to reason, plan, and act autonomously. The move marks a strategic shift from licensing designs to producing proprietary processors for the data center market.
Arm projects the new chip will generate $15 billion in annual revenue. The company expects to reach this revenue target within approximately five years. Arm Holdings shares surged nearly 12% in pre-market trading following the announcement.
The processor targets the specific computational needs of agentic AI rather than standard generative AI chatbots. Analysts noted the industry shift toward inference requires more efficient CPUs. Shares of competitors Intel and AMD also rose on the news as Arm enters direct competition with established players.