British semiconductor and software design firm Arm has announced its first internal chip, the AGI CPU, designed specifically for AI inference in data centers. The new chip is expected to generate $15 billion in revenue by 2031, with total annual revenue of $25 billion and earnings per share of $9. This is six times more than the company's $4 billion annual revenue in 2025. The company's move to manufacturing chips was a poorly kept secret, but the news of the server chip and high revenue expectations led to a positive surprise for the market. Citi analysts said the $15bn in revenue forecast would drive $7.5bn in incremental gross/operating profit, which is the driver of shareholder value.