Arm Holdings has created a Physical AI unit to focus on robotics, aiming to expand its presence in the market at CES. The company will operate three main business lines: Cloud and AI, Edge, and Physical AI, which includes its automotive sector. Arm is known for supplying technology to power smartphones and other devices.

The new Physical AI unit will focus on robots and autos, sharing sensor technology and hardware. Arm executives believe robotics has immense growth potential and can enhance labor productivity, freeing up time and potentially impacting GDP. The unit plans to add staff dedicated to robotics to drive innovation and growth.

Arm-based chips are used by various automakers and robotics companies worldwide. Hyundai-owned Boston Dynamics unveiled a humanoid robot named Atlas for deployment in U.S. factories by 2028. Interest in humanoid robots has surged among tech and auto companies, seeing them as the next frontier in AI and automation.

CES this year was dominated by robotics, with many companies showcasing humanoid robots performing various tasks. Machines equipped with artificial intelligence are gaining popularity for their enhanced capabilities. Companies are combining AI with machining to increase precision, productivity, and efficiency in production processes.

Boston Dynamics CEO noted a hype cycle around humanoid robots but highlighted the success of their quadruped robots in the market. Mobileye, owned by Intel, announced a $900 million acquisition of robotics company Mentee, while Nvidia unveiled physical AI products for autonomous vehicles. The convergence of AI and robotics continues to drive innovation in various industries.

Read more at Yahoo Finance: Exclusive-Arm launches ‘Physical AI’ unit, joining rush to robotics by tech and automakers