Quick Facts
- Arm launches its first manufactured silicon product, a 136-core CPU built on TSMC’s 3nm process for AI data centers
- The company projects $15 billion annual revenue from the chip by 2031, with customers including Meta, OpenAI, and Cloudflare
- Data centers can deploy up to 8,160 cores per air-cooled rack or 45,000 cores with liquid cooling
Arm Holdings launched its first manufactured silicon product, marking a historic shift from its traditional IP licensing model to direct chip sales. The Arm AGI CPU features 136 Neoverse V3 cores running up to 3.7 GHz, designed specifically for agentic AI workloads in data centers.
The 300-watt processor spans two dies built on TSMC’s 3nm process. It delivers more than 800 GB/s of memory bandwidth through 12 DDR5 channels and includes 128 MB of shared system-level cache. Data center operators can install up to 30 blades per standard rack for 8,160 total cores, or exceed 45,000 cores with liquid cooling.
“We are now in a new business for Arm, and we are supplying CPUs as chips,” CEO Rene Haas said during the Arm Everywhere event in San Francisco. The company targets $15 billion in annual revenue from the chip by 2031 as part of projected total revenue of $25 billion.
Meta served as the lead development partner and plans to deploy the AGI CPU alongside its custom MTIA accelerators. The company’s infrastructure head said the chip “significantly improves our data center performance density.”
OpenAI, Cloudflare, Cerebras Systems, and SAP joined the initial customer roster. Sachin Katti, head of industrial compute at OpenAI, said the AGI CPU will strengthen the orchestration layer coordinating large-scale AI workloads.
Hardware partners include ASRock Rack, Lenovo, Quanta Computer, and Supermicro. Early systems are available now with broader deployment expected in the second half of 2026.
Haas predicted agentic AI will drive CPU demand to 120 million cores per gigawatt of data center capacity, up from 30 million cores last year. The company claims the chip delivers twice the performance per rack compared to Intel silicon and could save up to $10 billion per gigawatt of capacity.
Arm’s stock climbed 14% following the announcement. HSBC analyst Frank Lee upgraded the stock to Buy with a $205 price target, calling the transition “game-changing.” More than 50 companies announced support for the launch, including Nvidia, Broadcom, AWS, Google, and Microsoft.
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