Arm Launches Physical AI Unit as Robotics Takes Center Stage at CES

Chip technology company Arm Holdings has reorganized its business to expand into the robotics market, creating a new Physical AI unit. The move comes as robots — especially humanoid robots — dominate discussions and showcases at this year’s CES.

From resources scattered across media reports, with reference to Reuters, Arm will now operate three core business areas: Cloud and AI, Edge (mobile devices and PCs), and Physical AI, which combines automotive and robotics technologies.

The company believes robotics and automotive systems share similar needs, such as power efficiency, safety, and reliability. Arm executives see robotics as a major long-term growth opportunity that could boost productivity and economic output, and the company plans to hire more staff focused on robotics.

Arm does not manufacture chips but licenses its technology, which powers most smartphones and is increasingly used in cars, data centers, and robots. Its designs are already used by many automakers and robotics firms, including Boston Dynamics.

CES 2025 has been widely described as a “year of the robot,” with companies across the tech and auto industries showcasing humanoid robots and investing heavily in physical AI. Major players like Tesla, Nvidia, and Mobileye are also pushing deeper into robotics and autonomous systems.