Arm Holdings Launches AGI CPU for AI Workloads, Signaling Shift to Chip Production

Arm Holdings announced plans to develop and sell its first internal silicon product, the AGI CPU, aimed at AI workloads in data centers. This marks a significant shift from its licensing model. The new processor is expected to create a multi-billion dollar revenue opportunity and targets next-generation AI applications. Manufacturing will be handled by Taiwan Semiconductor Manufacturing Company using advanced 3-nanometer technology. HSBC upgraded Arm's stock, citing its transition to AI server processors as undervalued by the market.

Published Mar 26, 2026

Arm Holdings is shifting its business model by introducing its first internal chip, the AGI CPU, targeting AI workloads in data centers. This change marks a departure from its licensing-centric approach, which has dominated since its inception in 1990.

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The AGI CPU aims to provide significant performance improvements for AI applications, featuring up to 136 cores and promising energy efficiency. Manufacturing will be done by Taiwan Semiconductor Manufacturing Company, with volume production expected in the second half of the year. HSBC has upgraded Arm's stock, anticipating revenue growth driven by AI server processors, projecting potential royalties from server CPU sales could match current total revenues by 2030.