Synopsys(SNPS.US)empowers Arm(ARM.US)to make a strong entry; cooperation to produce AI data center chips

LootboxPhobia · 2026-03-25T02:25:16+00:00

Synopsys and Arm collaborate to develop AGI CPU designed specifically for data centers, with projected annual revenue of $15 billion within five years. Meta will be the first customer, with the product featuring 136 cores and 300-watt power consumption, competing against Nvidia, Intel, and others. Total sales are projected to reach $25 billion.

LootboxPhobia

2026-03-25 02:25:16

Abstract generation in progress

The Insight Finance APP has learned that Synopsys (SNPS.US) has partnered with Arm (ARM.US) to produce a new AGI CPU for this UK-based company’s headquarters. The CPU is specifically designed for data centers. Synopsys provided electronic design automation, interface IP, and hardware-assisted verification during this process.

On Tuesday, Arm announced it will begin selling its own chips for the first time, expecting this business to generate approximately $15 billion in annual revenue within five years. At an event in San Francisco on Tuesday, Arm stated that Meta Platforms (META.US) will be the first major customer for its chip called AGI CPU. Arm said the product will feature up to 136 cores (a measure of processing power) and consume 300 watts.

Mohamed Awad, Executive Vice President of Arm’s Cloud AI Business Unit, said: “Designing data center chips for increasingly complex AI workloads requires rigorous system verification. The Arm AGI CPU demonstrates the strength of our SoC design and the success of our collaboration with Synopsys. Their design, IP, and verification solutions have supported us in developing and validating this groundbreaking high-efficiency chip, which will be used in next-generation AI infrastructure.”

This new CPU for data centers means Arm will compete with chip manufacturers like NVIDIA (NVDA.US), Intel (INTC.US), and AMD (AMD.US). Arm stated that this will help achieve total sales of about $25 billion within five years, five times the current level. The company also predicts that its intellectual property business will continue to grow, reaching approximately $10 billion. It is expected that earnings per share will reach $9 during this period.

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