An Arithmetic Logic Unit (ALU) is a digital circuit that performs arithmetic and logical operations on binary numbers, essential for CPUs, GPUs, and other computing circuits. Proposed by John von Neumann in 1945, ALUs can handle fixed-point and floating-point operations, and their design can range from simple 1-bit operations to complex functions like multiply-accumulate. The ALU processes data using a specific numeric format, typically two's complement, to facilitate efficient calculations.