Arm Forms New Physical AI Unit, Boosts Robotics Focus

Chip technology company Arm Holdings has reorganised its structure to establish a Physical AI unit. This new division aims to expand the company's presence in the robotics market. Company executives confirmed the reorganisation at CES, where robotics emerged as a central theme this year.

Credit: ARM

The decision to create a unit specialising in robotics arrives amid a flurry of announcements and activity at CES around humanoid robots. Large and small companies demonstrated robots capable of helping build cars, cleaning toilets, and dealing poker games – at a glacial pace.

Arm will now operate three main lines of business following this reorganisation. These include its Cloud and AI unit, Edge unit for mobile devices and PC products, and the new Physical AI unit. The Physical AI unit will house the company's automotive business.

Robots and automobiles form the core of physical AI, sharing a wide range of existing sensor technology and other hardware. Automakers, including Tesla, are creating robots to automate warehouse and factory tasks.

UK-based Arm does not manufacture chips itself but supplies the underlying technology powering most of the world's smartphones. Its technology also supports a growing number of other devices, such as laptops and data centre chips. The organisation generates revenue by charging licensing fees and collecting royalties when its designs are used.

The company's expanded focus on Physical AI is part of a larger effort to increase its overall business. Since Chief Executive Officer Rene Haas took over roughly four years ago, Arm has developed ways to increase prices for its latest technology and is considering its own full chip design.

Arm executives view robotics as a market with immense potential for long-term growth. Drew Henry, head of the newly formed Physical AI unit, told Reuters that physical AI solutions could "fundamentally enhance labor, free up extra time" and may have a considerable impact on gross domestic product as a result.

That division plans to add staff dedicated to robotics, according to Arm Chief Marketing Officer Ami Badani. Badani noted that the company combined automotive and robotics into a single unit because customer requirements are similar. These shared needs include power constraints, safety, and reliability.

When asked about customers, Henry said, "We work with everyone." Arm-based chips are utilised by dozens of automakers globally and by robotics companies such as Boston Dynamics, which is owned by Hyundai.

Boston Dynamics and Hyundai unveiled a production-ready Atlas humanoid robot. The Korean automaker stated it will begin deploying these robots in U.S. factories by 2028.

Interest in humanoid robots has boomed as technology and automotive companies view human-form machines as the next frontier in AI and automation. Tesla Chief Executive Officer Elon Musk has described his company's humanoid robot project, Optimus, as key to Tesla's future.

Musk stated these robots could eventually dwarf Tesla's vehicle business. They could also unlock vast new economic value by performing a wide range of tasks that humans do not wish to perform.

CES this year was dominated by robotics. Reuters observed dozens of companies exhibiting humanoid robots at the cavernous convention centre halls. These machines performed dances, played ping-pong, and conducted repetitive sorting tasks. Many such machines at CES incorporate forms of artificial intelligence, further enhancing their capabilities.

C.J. Finn, U.S. automotive industry leader for PwC, highlighted the importance of combined technologies. C.J. Finn, U.S. automotive industry leader for PwC, told Reuters: "(But) the real spend and where things are really moving forward is when they combine the machining with the level of AI to increase the precision, increase the productivity, or change how something's able to produce."

Boston Dynamics Chief Executive Officer Robert Playter told Reuters there was "a bit of a hype cycle around (robotic) humanoids at this point in time." However, Playter noted his company has already "put thousands of quadruped robots out in the market and actually (made) money."

Driving technology company Mobileye, partly owned by Intel, announced plans to acquire robotics company Mentee for USD 900 million. This acquisition aims to bring Mentee's product under Mobileye's roof. World AI leader Nvidia also unveiled a tool called Alpamayo and other physical AI products. These products are intended to power the next generation of autonomous vehicles.

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• Arm Holdings has reorganised its business to create a new "Physical AI" unit.

• The Physical AI unit will focus on expanding Arm's presence in the robotics market and will also house its automotive business.

• The reorganisation comes amid a surge of interest and activity around humanoid robots, particularly evident at CES this year.

Source: REUTERS