Reports from Financial Times suggest Arm has plans to create its own CPU, set to hit the market in 2025 with Meta Platforms said to be one of the first customers. The chip is said to be a CPU for data center servers, with TSMC handling the manufacturing. However, when the Financial Times asked about this, SoftBank (the majority owner of Arm) and Meta stayed quiet, while Arm didn't give a statement. A Nikkei report from May 2024 suggested that a prototype AI processor chip would be completed by spring 2025 and available for sale by fall 2025, so the latest information from the Financial Times report feels like a confirmation of previous rumors.

Right now, Arm makes money by letting others use its instruction set and core designs to make their own chips. This new move could mean Arm will compete with its current customers. Sources in the industry say Arm is trying to win business from Qualcomm, with rumors that Arm has been bringing in executives from companies it works with to help develop this chip. While Qualcomm had talked in the past about giving Meta a data center CPU using Arm's design, it looks like Arm has won at least some of that deal. However, no technical or specification details are available currently for Arm's 1st in-house server CPU.In December 2024, Arm and Qualcomm got into a legal fight about licensing fees with Qualcomm pointing fingers that Arm was trying to compete with its customers by making its own chips instead of just providing technology. A Delaware jury unanimously found that Qualcomm's use of Oryon cores in its Snapdragon X processors for client PCs did not violate its licensing agreements with Arm. Following this, Arm stated "We are disappointed that the jury was unable to reach consensus across the claims," and started to fight back against these claims in court. No later than this February, Qualcomm CEO Cristiano Amon confirmed Arm's withdrawal of license breach notice "Arm recently notified us that it was withdrawing its October 22, 2024 notice of breach, and indicated that it has no current plan to terminate the Qualcomm architecture license agreement."