Arm Holdings announced it will manufacture and sell its own computer chips for the first time in its 34-year history, marking a fundamental shift from its licensing-only business model that generated $3.2 billion in revenue last year.
The Cambridge-based company, which designs the architecture powering 99% of smartphones globally, will target AI data center applications where Nvidia currently commands 80% market share. Arm's designs already appear in chips from Apple, Qualcomm, and Amazon Web Services, but the company has never competed directly with its customers.
The move follows a pattern established by other design-focused firms. RISC-V International, Arm's open-source competitor, maintains a pure licensing model while companies like Qualcomm have moved between designing and manufacturing. Arm's shift suggests margin pressure in licensing as AI workloads demand custom silicon.
Meanwhile, Epic Games cut 1,000 employees—20% of its workforce—citing declining Fortnite engagement. The Cary, North Carolina-based company generated $5.8 billion in 2023 revenue, down from $6.3 billion in 2022. The layoffs follow similar cuts at Unity (1,800 employees, September 2023) and Electronic Arts (800 employees, February 2024) as gaming companies face post-pandemic normalization.
In AI infrastructure, companies are tracking employee AI usage on internal leaderboards, driving bills into seven figures monthly. The practice mirrors earlier SaaS adoption patterns where Salesforce and Slack usage became executive dashboard metrics. One Fortune 500 company reported 40% of employees now use AI tools daily, up from 8% in January.
Polymarket, the prediction market that processed $3.2 billion in election bets, faces scrutiny over false posts on its social feeds. A review found hundreds of misleading claims despite the platform's positioning as a "truth-seeking" alternative to traditional polling. The company operates from New York but restricts U.S. users after a 2022 CFTC settlement.
LMArena, which evaluates large language models through blind testing, raised $150 million at a $1.7 billion valuation. The startup has processed 50 million model comparisons since launching in May 2023, establishing itself as the de facto benchmark for AI model performance.