Meta and Arm are co-developing a new data center CPU designed specifically for AI workloads. Dubbed the Arm AGI CPU, the chip aims to replace legacy server processors with a more efficient alternative that boosts performance per rack.
The chip will complement Meta’s custom MTIA accelerators as part of its in-house hardware strategy for AI training and inference. Built on TSMC’s 3-nanometer process, volume production is expected in the second half of 2026.
Arm says a standard air-cooled rack using the AGI CPU can house 8,160 cores; liquid-cooled configurations scale beyond 45,000 cores. The design reportedly delivers over twice the performance per rack of current x86 systems-potentially saving $10 billion in capital costs per gigawatt of AI capacity.
Beyond Meta, launch partners include OpenAI, Cloudflare, SAP, SK Telecom, and Cerebras. Meta plans to open-source its board and rack designs via the Open Compute Project later this year.
Shares of Meta and Arm dipped slightly following the announcement, trading at $595.20 and $135.20, respectively.