03:50 PM EDT, 03/24/2026 (MT Newswires) -- Arm Holdings ( ARM ) said Tuesday it is venturing into silicon production to enhance its compute platform capabilities, with the company unveiling its first artificial intelligence data center chip.

The British semiconductor manufacturer's effort starts with the launch of an Arm-designed central processing unit for AI data centers, called Arm AGI CPU, which was developed alongside lead partner Meta Platforms ( META ) .

Expanding beyond intellectual property licensing and compute subsystems to include in-house silicon production will support agentic AI infrastructure, Arm said. Compared with x86 CPUs, the Arm AGI CPU delivers more than 2x performance per rack, according to the company.

"Today marks the next phase of the Arm compute platform and a defining moment for our company," Chief Executive Rene Haas said in a statement. "With the expansion into delivering production silicon with our Arm AGI CPU, we are giving partners more choices all built on Arm's foundation of high-performance, power-efficient computing, to support agentic AI infrastructure at global scale."

Arm's US-listed shares were down 1.7% in Tuesday late-afternoon trade, while Meta fell 1.6%.

"We worked alongside Arm to develop the Arm AGI CPU to deploy an efficient compute platform that significantly improves our data center performance density and supports a multi-generation roadmap for our evolving AI systems," said Santosh Janardhan, head of infrastructure at Meta.

Several other customers, including Microsoft ( MSFT )-backed (MSFT) OpenAI, Cloudflare ( NET ) , and SAP (SAP), will deploy the Arm AGI CPU for key agentic CPU use-cases, according to the statement.

Arm said its compute platform expansion into silicon production has won support from several companies across hyperscale, cloud, silicon, memory, networking, software, system design and manufacturing.

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