Synopsys (SNPS.US) is partnering with ARM Holdings (ARM.US) to manufacture the UK-based company's new AGI CPU, designed specifically for data centers. Synopsys is contributing electronic design automation, interface IP, and hardware-assisted verification to the process.
On Tuesday, ARM announced it will begin selling its own chips for the first time, projecting that this business will generate approximately $15 billion in annual revenue within five years. At an event in San Francisco, ARM stated that Meta Platforms (META.US) will be the first major customer for the chip, named the AGI CPU. The product will feature up to 136 cores—a measure of processing power—with a power consumption of 300 watts.
Mohamed Awad, Executive Vice President of ARM's Cloud AI Business Unit, commented: "Designing data center chips for increasingly complex AI workloads requires rigorous verification of the entire system. The ARM AGI CPU demonstrates the strength of our SoC design and the results of our collaboration with Synopsys. Their design, IP, and verification solutions supported us in developing and validating this groundbreaking, high-efficiency chip, which will be used in next-generation AI infrastructure."
This new data center CPU signifies that ARM will compete directly with chip manufacturers such as NVIDIA (NVDA.US), Intel (INTC.US), and AMD (AMD.US). ARM stated this initiative will help achieve total sales of approximately $25 billion within five years, a fivefold increase from current levels. The company also forecasts that its intellectual property business will continue to grow, reaching around $10 billion by that time. Earnings per share are expected to reach $9 during this period.
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