Arm Holdings is expanding its ambitions in robotics and automation with the launch of a new Physical AI unit, a move that signals the company’s long-term focus on humanoid and industrial AI applications. Announced by company executives at CES 2026, the new division brings together Arm’s automotive and robotics efforts under a single structure, allowing the chip designer to address overlapping technology needs across both sectors. The unit will focus on developing solutions that “fundamentally enhance labor, free up extra time,” according to Drew Henry, who will head the Physical AI division.
The creation of the Physical AI unit comes at a time when CES 2026 has been heavily centered on robotics and embodied AI. Across the show floor, companies have showcased humanoid robots capable of dancing, playing ping-pong, and performing repetitive factory tasks, underscoring how quickly robotics is moving from experimentation to real-world deployment. Against this backdrop, Arm plans to expand its robotics-focused workforce as it prepares for sustained growth in physical AI systems.
Arm executives emphasized that combining automotive and robotics under one umbrella is a strategic decision rooted in shared technical requirements. Chief Marketing Officer Ami Badani explained that both automakers and robotics companies demand high standards of safety, reliability, and power efficiency—areas where Arm’s processor architectures already play a central role. This alignment enables the company to deliver scalable platforms that can support everything from autonomous vehicles to industrial robots.
Henry highlighted Arm’s broad ecosystem approach, saying, “We work with everyone,” pointing to collaborations with dozens of automakers and robotics firms. Among these partners is Boston Dynamics, the Hyundai-owned robotics company known for its quadruped and humanoid robots. Arm’s neutral, licensing-based business model allows it to support a wide range of players without competing directly in hardware manufacturing.
The broader industry momentum around humanoid robots was also evident at CES. Tesla CEO Elon Musk has said that the Optimus humanoid robot could one day surpass Tesla’s vehicle business in economic value. At the same time, Boston Dynamics CEO Robert Playter offered a more measured view, noting that there is “a bit of a hype cycle around robotic humanoids at this point in time,” while emphasizing that his company has already “put thousands of quadruped robots out in the market and actually made money.”
With NVIDIA and other technology leaders unveiling new physical AI tools at CES, Arm’s move underscores the accelerating convergence of AI, robotics, and industrial automation, positioning the company to play a foundational role in the next generation of intelligent machines.
