Arm Debuts New Artificial Intelligence (AI) CPU, Nabs Meta, OpenAI, Cloudflare as First Customers
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By Danny Vena, CPA – Mar 24, 2026 at 6:28PM ESTKey PointsAfter decades of creating blueprints for semiconductors, Arm is creating its own physical silicon for the first time.The chipmaker partnered with Meta Platforms to create the Arm AGI CPU.Arm has lined up an impressive roster of initial customers for its inaugural chip. For more than 35 years, Arm Holdings (ARM 1.41%) has been at the forefront of chip design, creating and licensing the blueprints for a wide range of semiconductors for smartphones, personal computers, tablets, and smart TVs, as well as hyperscale computing, cloud computing, and data centers. Moreover, the company's chip designs are used in thermostats, automobiles, and even drones. In fact, Arm say it controls a "significant proportion of all chips with embedded processors." Now that the proliferation of artificial intelligence (AI) is taking hold, the company is making what is arguably the biggest pivot in its storied history. Arm is making physical silicon for the first time, a move long rumored in the industry. At an event in San Francisco this week, Arm unveiled its first in-house chip, dubbed the Arm AGI CPU. Image source: Getty Images. The era of agentic AI The company says the Arm AGI CPU is "the first production silicon from Arm, designed for AI infrastructure at scale." The chip is "ruthlessly optimized" for artificial general intelligence (AGI), hence the name, according to Mohamed Awad, Arm's cloud AI chief. The processor boasts up to 64 CPUs and about 8,700 cores, which can get "two times the performance-per-watt than you can from an x86 rack," Awad said. "That means twice as much performance in the same footprint, in the same power." He went on to say the benefit of Arm's architecture is that it's "super-efficient" at a time when companies are looking to get the most bang for their AI buck. Arm unveiled a Who's Who of technology companies as customers for its inaugural semiconductor. Meta Platforms (META 1.91%) served as the lead partner and co-developer of the Arm AGI CPU and will be its first wide-scale user, noting that it was created to work hand in hand with Meta's homegrown chips -- the Meta Training and Inference Accelerator (MTIA). The companies pledged to collaborate across multiple generations of the Arm AGI CPU roadmap. ExpandNASDAQ: ARMArm HoldingsToday's Change(-1.41%) $-1.93Current Price$134.96Key Data PointsMarket Cap$145BDay's Range$133.01 - $140.5852wk Range$80.00 - $183.16Volume11MAvg Vol5.9MGross Margin94.84% Other early customers include content delivery network (CDN) provider Cloudflare, multi-cloud security specialist F5, ChatGPT parent OpenAI, enterprise software specialist SAP, and SK Telecom, South Korea's largest telecommunications operator, among others. Arm is already one of the premier names in semiconductors, counting Apple, Nvidia, Amazon, Alphabet's Google, and Microsoft among its biggest customers. More than 350 billion Arm-based chips have shipped to date, with more than 22 million software developers in the Arm ecosystem. By branching into a new business, Arm hopes to capture a share of the $1 trillion AI CPU market. And Arm sports a forward price/earnings-to-growth (PEG) ratio of 0.57, when any number less than 1 is the standard for an undervalued stock.Read NextMar 23, 2026 •By Eric VolkmanWhy Arm Holdings Stock Bumped Higher TodayMar 22, 2026 •By Joe TenebrusoWhy Arm Holdings Stock Rallied This WeekMar 14, 2026 •By Rick OrfordPrediction: Arm Holdings Could Ride the Edge AI Boom for YearsMar 4, 2026 •By Chris NeigerWhy Arm Holdings Stock Surged 21% Higher in FebruaryFeb 25, 2026 •By Jeremy BowmanAmazon Just Delivered Great News for This Top AI StockFeb 24, 2026 •By Jeremy BowmanWhy Arm Holdings Stock Was Moving Higher TodayAbout the AuthorDanny Vena, CPA, is a contributing Motley Fool technology analyst specializing in artificial intelligence, cloud computing, semiconductors, software, cybersecurity, and consumer electronics. He is a Certified Public Accountant and previously worked as a controller and accountant across small and midsize businesses. Danny also served 13 years in the U.S. Army. He holds a bachelor’s degree in accounting from the University of Phoenix.TMFLifeIsGoodX@dannyvenaStocks MentionedArm HoldingsNASDAQ: ARM$134.96(-1.41%)-$1.93Meta PlatformsNASDAQ: META$592.51(-1.91%)-$11.55MicrosoftNASDAQ: MSFT$372.37(-2.77%)-$10.63AlphabetNASDAQ: GOOGL$290.42(-3.85%)-$11.64AppleNASDAQ: AAPL$251.59(+0.04%)+$0.10AmazonNASDAQ: AMZN$207.24(-1.38%)-$2.90NvidiaNASDAQ: NVDA$175.07(-0.33%)-$0.57F5NASDAQ: FFIV$289.12(-0.22%)-$0.63SAPNYSE: SAP$171.23(-3.89%)-$6.93Sk TelecomNYSE: SKM$30.79(+6.61%)+$1.91AlphabetNASDAQ: GOOG$289.30(-3.25%)-$9.72CloudflareNYSE: NET$213.58(-3.20%)-$7.07*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.