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Arm’s pitch in AI and high-performance computing (HPC) is about designing a data-center system around its workloads, not simply choosing a processor. At Mobile World Congress (MWC) in March 2025, Arm executive Mohamed Awad described how licensed Arm technology, software and hardware partners, and integrated compute designs could support customers building custom silicon. In March 2026, Arm announced its first Arm-designed production data-center CPU, turning a possibility raised in the earlier interview into a company-announced product.

Why data-center operators are thinking in systems

In Pablo Valerio’s March 10, 2025, EE Times report from MWC in Barcelona, Awad described growing interest among large infrastructure operators in silicon tailored to their data centers. The aim, as he presented it, is to coordinate the design of CPUs, accelerators and networking rather than assemble a system entirely from off-the-shelf parts.

“There’s this clear desire to move away from building your data center around off-the-shelf silicon, but rather, building your silicon to the specific of your data center,” Awad said in the interview. His wording captures the shift: the design target is the whole workload and infrastructure, not one chip in isolation.

Awad cited Nvidia’s Grace Blackwell as an example of a CPU designed to complement a GPU accelerator, and named AWS, Google and Microsoft among hyperscalers pursuing custom silicon. Those are examples from his interview, not an independent comparison of products or evidence that custom designs always outperform standard parts.

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What Arm offered in the 2025 interview

Awad described Arm’s position as resting on established technology, a hardware and software ecosystem, and licensing arrangements that let customers modify and optimize designs for their systems. The model gives customers a way to build around Arm technology without requiring every company to start with the same finished processor.

Integrated compute subsystems

Arm was also offering more integrated compute subsystems. Awad explained the idea with an analogy: “Now we put the engine and the transmission together for you, and we hand that to you, and now you can build pieces around it to get to where you want to go.” That is an explanation of the approach, not a technical specification for a particular product.

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Arm Total Design and industry partners

The EE Times report described Arm Total Design as an initiative intended to reduce design effort, improve time to market and make custom silicon more attainable. The article did not quantify savings or establish a return on investment. It also named Nokia, Samsung and Ericsson in the telecom infrastructure ecosystem, while Awad pointed to telecommunications and manufacturing as fields beyond hyperscale cloud where application-specific silicon could matter. The report did not detail particular chip designs or establish that every named relationship remains current.

When does designing a custom chip make sense?

Custom silicon is a substantial investment, not an automatic shortcut to lower costs or better performance. The economics depend partly on whether enough deployments can share the development expense. As Awad put it: “Building silicon is expensive. And so, you know, whether or not you can build your own silicon depends on whether you can effectively amortize the cost over the products you’re deploying.”

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Teresa Cervero, a research engineer at Barcelona Supercomputing Center (BSC), added that more complex systems raise investment costs and the need for skilled staff. The 2025 report gives no minimum deployment scale, cost model or controlled performance comparison, so it cannot establish a universal point at which custom silicon pays off.

Questions to answer before committing

  • Can enough deployments share the design cost? A chip intended for a broad, recurring fleet has a different cost-spreading opportunity from one for a small number of systems.
  • Is there a workload-specific reason to customize? Identify the requirements that off-the-shelf silicon does not meet, such as how the system must coordinate compute and networking.
  • Can the organization support the engineering effort? Account for design complexity and the skilled staff needed to build and maintain the system.
  • What does the ecosystem provide? Consider the software and hardware support, time to market, and supply-chain access needed for the intended deployment.

These are decision factors, not a formula: the interview supplies no threshold or ranking that would make the choice for every company.

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How the report frames Arm and RISC-V

Cervero, who was described in the report as leading a BSC team working on European RISC-V initiatives, argued that demand for customization was encouraging heterogeneous systems and open silicon efforts. She said RISC-V allows more architectural exploration than Arm’s licensing model. That is her perspective in the interview, not a full technical or commercial comparison.

She summarized the motivation this way: “Innovation is crucial for differentiation and tackling efficiency challenges such as speed, performance, power consumption, and scalability.” The report does not provide benchmarks or compare Arm and RISC-V on performance, software support, cost, power consumption or ecosystem maturity.

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Approach What the report establishes What it does not establish
Off-the-shelf silicon Awad described some operators as moving away from building data centers entirely around standard parts. The report does not compare its cost, performance or suitability with custom designs.
Custom silicon using Arm technology Awad described Arm licensing as allowing customers to modify and optimize designs, supported by an established ecosystem. No benchmark, customer cost saving or return on investment is quantified.
RISC-V and open silicon initiatives Cervero argued that RISC-V permits more architectural exploration. No like-for-like results on performance, power, software support, cost or maturity are supplied.
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Arm’s move from licensing to a production data-center CPU

In the March 2025 interview, Awad did not confirm that Arm planned to design and sell its own server CPU. That historical answer changed in March 2026: Arm announced the Arm AGI CPU, describing it as its first Arm-designed production data-center CPU and a move from IP and compute subsystems into production silicon.

Arm named Meta as the lead partner and said other customers and leading original design manufacturers had committed for production. Those product and commitment details are Arm’s announcement; they are not independently verified outcomes. Arm also publicized performance comparisons, but those should be read as company claims tied to its stated configurations rather than independent test results.

What the 2025 comments say about supply chains and China

Awad described supply-chain conditions as unpredictable in the March 2025 interview and said partners wanted greater stability. He expressed interest in stability across foundries, naming Intel and Samsung alongside TSMC. These remarks are a snapshot of what he said at MWC in 2025, not a current assessment of foundry capacity or supply risk.

On China, Awad said Arm continued supporting Chinese partners through Arm China and operated within applicable laws and regulations. That is his account from the interview; the article did not analyze export-control rules or establish which Arm intellectual property is currently available in China. It should not be treated as legal guidance.

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What the MWC discussion means for companies

The central point is not that every data-center operator should design a chip. It is that custom silicon has become part of a broader infrastructure-design discussion: operators may want CPUs, accelerators and networking to fit a particular system, while Arm’s 2025 pitch emphasized licensing, ecosystem support and more integrated designs as ways to participate. Scale, engineering capacity and ecosystem fit remain practical constraints, and the interview did not rank Arm, RISC-V and off-the-shelf options. Arm’s 2026 AGI CPU announcement adds a new chapter, but the company’s product claims and customer commitments should remain attributed to Arm.

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