Arm unveils new AI chip, expects it to add billions in annual revenue

SAN FRANCISCO: Arm Holdings announced a new artificial intelligence data center chip on Tuesday which it said will add billions of dollars of revenue and represent a significant shift in the company’s strategy.

The new chip, called the AGI CPU, will address data-crunching needed for a specific type of AI that is able to act on behalf of users with minimal oversight, instead of responding to queries as part of a chatbot.

So-called agentic AI has jumpstarted demand for the central processing units (CPUs) produced by the likes of Intel and Advanced Micro Devices.

For years, Arm, majority-owned by Japan’s SoftBank Group , has relied only on intellectual property for revenue, licensing its designs to companies such as Qualcomm and Nvidia and then collecting a royalty payment based on the number of units sold.