Arm has reorganized its structure and launched a new “Physical AI” division as it responds to accelerating demand in robotics and autonomous systems.

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Arm Holdings fell 11% after reporting Q1 fiscal 2026 earnings, but analysts say the decline reflects increased spending to support a strategic shift toward building and selling chips/chiplets rather than just licensing IP.

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Arm has seen a remarkable 14-fold increase in data center customers since 2021, reaching 70,000 users, Reuters reported

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