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Arm confirms Cambridge expansion in week of share price shock




Arm has signed a lease for the entire Optic building at British Land’s Peterhouse Technology Park, triggering an expansion of its Cambridge presence during a week which has seen its share price challenged by the turmoil around the launch of China’s DeepSeek app.

Peterhouse Technology Park, owned by British Land, is a 14-acre innovation-led campus of modern, sustainable lab and office space. Arm already occupies all six buildings on the Fulbourn Road park, totalling 330,000 sq ft.

CGI of the Optic building at British Land’s Peterhouse Technology Park
CGI of the Optic building at British Land’s Peterhouse Technology Park

The expansion marks a significant milestone for Cambridge and reinforces Arm’s commitment to the region’s thriving innovation ecosystem.

The Optic, scheduled for completion in February 2025, provides high-quality office and lab-enabled space designed to accommodate the needs of fast-growing, dynamic businesses. The building is all electric and has been developed to the highest sustainability standards, targeting BREEAM ‘Excellent’ accreditation and featuring 94 EV charging points, solar panels, and a 2,500 sq ft roof terrace for socialising and relaxation.

Michael Wiseman, head of workspace leasing and science & technology at British Land, said: “Arm is a globally significant business and its commitment to expand in Cambridge and the UK demonstrates the strength of our tech ecosystems and the growing demand for high-specification offices and lab spaces in the Cambridge area.

“The UK, particularly the Golden Triangle, is ideally suited to support the growth of the world’s top innovation firms, like Arm, due to its world-class academic and research institutions and deep pool of talent.

Arm Cortex is powering global computing. Picture: Arm
Arm Cortex is powering global computing. Picture: Arm

“We are incredibly proud of what we have delivered at The Optic; the building is a strong reflection of our ability to provide best in class space to cutting-edge businesses such as Arm.”

Meanwhile, Arm shares were recovering after a 10 per cent dip earlier in the week. The fall was triggered by a new AI chatbot from China developed on a low budget shook up the tech landscape.

Called DeepSeek-R1, the app operates in a similar fashion to OpenAI’s ChatGPT and Google’s Gemini, but its developers say they have achieved these results for a fraction of the cost.

This has shaken Silicon Valley, which is spending billions on developing AI, and now has the industry looking more closely at DeepSeek and its technology.

Hamza Mudassir, lecturer in strategy at the Faculty in Strategy and Policy at Cambridge Judge Business School
Hamza Mudassir, lecturer in strategy at the Faculty in Strategy and Policy at Cambridge Judge Business School

“This recent dip in shares should serve as a wake-up call: even low-powered chips can play a pivotal role in AI,” says Hamza Mudassir, a lecturer in strategy at the Faculty in Strategy and Policy at Cambridge Judge Business School.

He adds: “Taking a step back, it’s important to recognise that Arm is not currently a major player in AI hardware or software.

“While their PR efforts may paint a different picture, Arm’s core business remains system-on-chip (SoC) designs that excel in low-power applications, such as mobile and some traditional computing – not AI.”

Arm shares had tumbled from $162 on 24 January to a low of $143 on 27 January. Today (30 January) the Nasdaq share price stood at $148.

Arm did not wish to comment.



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