LAS VEGAS, Jan 7 — GeokHub Chip technology firm Arm Holdings has restructured its business to launch a new Physical AI division, signaling a deeper push into the fast-growing robotics and automation market as humanoid robots take center stage at this year’s CES technology show.
The move comes amid heightened industry interest in robots capable of performing physical tasks, from factory work to logistics and household assistance. At CES, companies large and small showcased robots designed to assemble vehicles, clean facilities, and perform repetitive manual work — highlighting what many executives see as the next frontier of artificial intelligence.
New Structure, New Focus
Under the reorganization, Arm will now operate three main business units:
- Cloud and AI
- Edge, which includes mobile devices and PC products
- Physical AI, housing its automotive and robotics technologies
Company executives said robotics and automotive systems share similar technical requirements, including power efficiency, safety, reliability, and sensor integration — making them a natural fit within a single division.
Why Physical AI Matters
Unlike traditional AI software, physical AI focuses on machines that interact with the real world. Automakers and technology firms are increasingly blending robotics with artificial intelligence to automate warehouses, factories, and production lines.
Companies such as Tesla are developing humanoid robots for industrial use, while global automakers are exploring similar technologies to boost efficiency and address labor shortages.
Arm does not manufacture chips itself but licenses processor designs that power most of the world’s smartphones, along with a growing share of laptops, vehicles, data centers, and robotics systems. The company earns revenue through licensing fees and royalties when its designs are used.
Long-Term Growth Strategy
Since taking over as chief executive nearly four years ago, Rene Haas has pushed Arm to expand beyond mobile devices, raise prices for advanced technology, and explore full chip design strategies.
Executives said robotics represents a long-term growth opportunity with the potential to significantly boost productivity and economic output. The new Physical AI unit will expand hiring focused specifically on robotics development.
“We work with everyone,” said the head of the new division, noting that Arm-based chips are already used by dozens of automakers and robotics companies worldwide, including Boston Dynamics, which is owned by Hyundai.
Hyundai recently unveiled a production-ready version of the Atlas humanoid robot and plans to deploy it in U.S. factories by 2028.
Robotics Dominates CES 2026
This year’s CES has been widely described as the “year of the robot,” with humanoid machines dominating exhibition halls. Demonstrations included robots dancing, playing table tennis, sorting objects, and performing factory-style tasks.
Industry analysts say the real breakthrough will come when robotics hardware is tightly integrated with advanced AI systems — increasing precision, productivity, and scalability.
Despite the excitement, some industry leaders caution that humanoid robotics is still in an early phase. However, companies with proven commercial deployments say the market is already moving beyond experimentation toward real revenue.
GeokHub Analysis
Arm’s creation of a Physical AI division reflects a broader shift across the tech and automotive industries toward machines that can act, not just think. As AI moves from screens into factories, warehouses, and everyday environments, companies providing the foundational technology may gain a strategic advantage in shaping the future of automation.
