Key points
- Arm has created a new “Physical AI” unit to focus on robotics and automotive technology.
- The move comes as humanoid robots are a major theme at CES 2026.
- The new unit will combine ARM’s automotive business with a dedicated robotics team.
- The company sees a natural synergy between the technological needs of cars and robots.
Chip technology company Arm is restructuring its business to create a new “Physical AI” unit, a clear sign that it’s going all-in on the booming robotics market. The announcement came at CES in Las Vegas, where humanoid robots have been the talk of the town.
Arm, which provides the underlying technology for most of the world’s smartphones, is now organizing itself into three main divisions: Cloud and AI, Edge (which includes mobile and PC products), and the new Physical AI unit. This new division will house Arm’s existing automotive business and a new, dedicated robotics team.
The company sees a natural synergy between cars and robots. Both require similar sensor technology, power efficiency, and safety features. Plus, automakers like Tesla are already developing their own robots to automate tasks in their factories. By combining these two areas, Arm is positioning itself to be a key player in the next wave of automation.
This move is part of a larger effort by CEO Rene Haas to grow the company’s business and increase its prices. Arm executives see robotics as a market with huge long-term potential. The head of the new unit, Drew Henry, told Reuters that physical AI could “fundamentally enhance labor” and have a major impact on the global economy.
Arm-based chips are already used by dozens of automakers and robotics companies, including Boston Dynamics. At CES, Boston Dynamics and its owner, Hyundai, unveiled a new production-ready Atlas humanoid robot that will be deployed in U.S. factories by 2028.
With interest in humanoid robots surging and companies from Tesla to Nvidia making big plays in the space, Arm’s new Physical AI unit is a strategic move to capture a significant share of this emerging market.
