Arm to Sell Own AI Chips, Targeting $15B Revenue with Meta

Arm Holdings will design and sell its own processors for the first time, shifting away from its traditional architecture licensing model. The company’s first product, the Arm AGI CPU, targets the artificial intelligence data center market. Meta Platforms has signed on as the first major customer for the new hardware.

The SoftBank-owned firm aims to generate $15 billion in annual revenue from this segment within five years. This expansion positions Arm as a direct competitor to established chipmakers Intel and AMD. Taiwan Semiconductor Manufacturing Company (TSMC) will manufacture the chips, which are designed for high power efficiency during AI workloads.

OpenAI and SK Telecom have also reportedly committed to integrating the AGI CPU into their infrastructure. This strategic pivot allows Arm to capture a larger share of the value within the booming AI sector.