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Arm Launches 'Physical AI' Division To Target Robotics As Humanoid Robots Take Center Stage At CES - ARM Holdings (NASDAQ:ARM)

Arm combined automotive and robotics into a Physical AI unit to leverage shared tech needs and tap into robotics' large growth potential, CEO Rene Haas said.

  • At CES in Las Vegas, Arm Holdings announced on January 08, 2026, a reorganisation creating a Physical AI division, joining Cloud and AI and Edge as its three core units.
  • Amid CES's robotics focus, Arm said automotive and robotics share technical needs like power constraints, safety, reliability and sensors, prompting their combined unit this year.
  • Arm noted that its Physical AI division plans to add staff dedicated to robotics, with Arm-based chips used by automakers and Boston Dynamics, earning licensing fees and royalties.
  • Arm executives say industry leaders such as Nvidia Corp, Tesla, Boston Dynamics, and Mobileye are investing heavily in physical AI, with Arm shares at $115.68 and $115.75 amid negative Benzinga Edge Rankings.
  • Industry voices caution that some warn of a 'hype cycle' around humanoids even as CES exhibits showcased practical tasks and the Korean automaker plans factory deployment of the production-ready Atlas humanoid by 2028.
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Arm Holdings has restructured its company and created a unit called "Physical AI" to enter the robotics market more strongly.The article Arm Holdings establishes new business unit for robotics and automotive appeared first on The Decoder.

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Reuters broke the news in United Kingdom on Wednesday, January 7, 2026.
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