What Is Physical AI? Arm’s New Unit Explains the Tech Behind Robots and Cars

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Arm Enters Robotics

Chip technology firm Arm Holdings has reorganised its business to deepen its push into robotics, announcing a new Physical AI unit amid growing global interest in intelligent machines.

CES Robotics Push

The move comes as robots dominated CES, the world’s largest consumer technology show, where companies showcased machines built for factories, cleaning and repetitive tasks, highlighting accelerating momentum in automation.

Robotics Automotive Focus

Arm’s newly created Physical AI division will focus on robotics and automotive technologies, which, Reuters reported, share similar needs around sensors, safety standards and power-efficient hardware.

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New Business Structure

After reorganising its operations, Arm will now run three core segments: Cloud and AI services, Edge platforms for mobiles and PCs, and Physical AI, combining automotive and robotics technologies.

Autos & Robots

Arm leaders say cars and robots demand similar computing capabilities, as automakers expand into humanoid machines designed to handle factory work, warehouses and logistics tasks globally.

Growth Strategy Shift

Under Chief Executive Officer (CEO) Rene Haas’s leadership over the past four years, Arm has raised prices for newer technologies and is evaluating complete chip designs to grow future revenues.

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Robotics Market Potential

Drew Henry, head of Arm’s Physical AI unit, told Reuters that intelligent machines could raise productivity, transform labour patterns and deliver meaningful economic gains over the long term.

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Existing Industry Reach

Arm’s technology underpins chips used by major automakers and robotics companies worldwide, including Boston Dynamics, as its humanoid and four-legged robots advance towards wider commercial use.

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Humanoid Robots CES

From Tesla’s Optimus project to Mobileye’s planned acquisition of robotics firm Mentee, humanoid robots featured prominently at CES, underscoring growing interest across the technology and automotive industries.

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