Arm Holdings has announced the launch of a new Physical AI unit as it steps up its focus on robotics and automation, with a long term view on humanoid and industrial AI applications.
The new division was announced by company executives at CES 2026. It brings together Arm’s automotive and robotics initiatives under a single structure, allowing the company to address shared technology needs across both segments. The Physical AI unit will be led by Drew Henry and will focus on building solutions that, in his words, “fundamentally enhance labor, free up extra time.”
The move comes as CES 2026 places strong emphasis on robotics and embodied AI. Companies across the event showcased humanoid robots capable of dancing, playing ping pong, and handling repetitive factory tasks. These demonstrations highlighted how robotics is moving rapidly from experimental stages to real world deployment. In response, Arm plans to expand its robotics focused workforce to support long term growth in physical AI systems.
Arm leaders said the decision to combine automotive and robotics efforts is driven by common technical demands. Chief Marketing Officer Ami Badani noted that both sectors require high levels of safety, reliability, and power efficiency. These are areas where Arm’s processor designs already have a strong presence. This shared foundation allows Arm to deliver scalable platforms that support applications ranging from autonomous vehicles to industrial robots.
Henry pointed to Arm’s wide ecosystem approach, stating, “We work with everyone.” He highlighted partnerships with dozens of automakers and robotics companies, including Boston Dynamics, the Hyundai owned robotics firm known for its quadruped and humanoid robots. Arm’s licensing based and neutral business model enables it to support multiple players without directly competing in hardware manufacturing.
The wider industry interest in humanoid robots was also visible at CES 2026. Tesla CEO Elon Musk has said the Optimus humanoid robot could one day exceed Tesla’s vehicle business in economic value. In contrast, Boston Dynamics CEO Robert Playter offered a cautious view, saying there is “a bit of a hype cycle around robotic humanoids at this point in time,” while adding that his company has already “put thousands of quadruped robots out in the market and actually made money.”
With several technology leaders unveiling new physical AI tools at CES, Arm’s announcement reflects the growing convergence of AI, robotics, and automation, positioning the company as a key enabler of the next generation of intelligent machines.
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