Arm Shares Leap on IBM Deal, AGI CPU Pre-Orders Top $2 Billion

Arm Holdings shares surged 4% in extended trading after the company announced an expanded collaboration with IBM and secured over $2 billion in pre-orders for its new AGI CPU.

The deal will bring Arm's technology to IBM Z and LinuxONE mainframe platforms, marking a significant expansion beyond its conventional market segments. The agreement also enables individual processor cores to natively run both IBM and Arm instruction sets.

Arm's Executive Vice President of Cloud AI, Mohamed Awad, highlighted the innovation, saying that this enables Arm-based Linux systems to operate concurrently with z/OS and traditional Linux workloads on unified hardware.