Chip technology company Arm Holdings has reorganized to establish a new 'Physical AI' unit, signaling an expanded focus on the robotics and automotive markets. This move aligns with a broader trend at CES, where numerous companies are showcasing robots for various applications. The Physical AI unit will integrate automotive business with robotics, leveraging shared sensor technology. Arm, which licenses its chip designs, aims to grow its business by capitalizing on the potential of robotics and AI in these sectors.