Arm Holdings has broken from its traditional licensing-only model by unveiling its first proprietary in-house chip designed for AI data centers, with the company forecasting the move will generate billions of dollars in additional annual revenue and sending its stock surging over 16%.

Broadcom announced it has shipped the industry's first 2nm custom compute System-on-Chip for AI workloads, built on its proprietary 3.5D Extreme Dimension System-in-Package platform, marking a major leap in AI chip density and performance.