Nvidia and Arm challenge Intel and AMD in server CPUs

On October 19, US AI cloud provider Modal announced plans to adopt Nvidia’s new-generation Vera CPU for AI agent workloads. Modal has previously relied on x86 processors from Intel and AMD for its CPU infrastructure, making the planned adoption an opening for Nvidia in their established market.

Arm is also moving into direct competition. In March, the company launched its first self-designed data center processor, the AGI CPU. The launch marks a shift for a business long focused on licensing processor IP rather than offering its own data center chips.

The developments bring Nvidia and Arm into a server CPU market long dominated by Intel and AMD. AI agent workloads are reshaping data center compute demand and setting the backdrop for renewed competition in 2026.