Apple Developing AI Chips for Data Centers

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Apple’s foray into developing its chip for running artificial intelligence software in data centers has been unveiled through Project ACDC (Apple Chips in Data Center), according to sources familiar with the matter cited by the Wall Street Journal. This project signifies Apple’s ambition to harness its chip design expertise for its server infrastructure.

While Apple has not officially commented on the report, its shares surged by 1% before the bell on Tuesday. The company’s success in chip design, particularly for devices like the iPhone, iPad, and Mac laptops, has solidified its reputation as a major player in the semiconductor industry.

The purported server chip from Apple is expected to be optimized for running AI models, specifically for inference tasks, rather than training AI models, an area currently dominated by Nvidia. CEO Tim Cook’s recent remarks indicated the company’s commitment to unveiling AI-powered features shortly.

Apple is poised to hold a virtual event where it is anticipated to introduce new iPad models, potentially featuring a new chip designed to accelerate AI tasks performed on the devices. Project ACDC has reportedly been in development for several years, although the timeline for the chip’s unveiling remains uncertain.

Apple’s collaboration with Taiwan Semiconductor Manufacturing Co. (TSMC) has been instrumental in designing and initiating the production of these chips. However, it’s unclear whether both companies have reached a definitive outcome in their efforts.

As Apple continues to invest in generative AI and explores opportunities in AI-powered technologies, developing its own server chip marks a significant step in its pursuit of innovation and technological advancement.