Apple Inc. is working on developing its own homegrown artificial-intelligence (AI) chips for data-center servers though it’s unclear if the semiconductor will ever be deployed.
Apple’s previous in-house chip
The effort would build on Apple’s previous efforts to make in-house chips, which run in its iPhones, Macs and other devices which cited unidentified people familiar with the matter. The server project is code-named ACDC within the company. Though, this one has been underway for several years with partner Taiwan Semiconductor Manufacturing Co. (TSM), but it is uncertain when or if it’ll ever be unveiled.
Apple shares rose as much as 1.2% in late trading on Monday. They had been down 5.6% this year through the close. A representative for the Cupertino, California based company didn’t immediately respond to a request for comment.
Apple’s main focus of the project
The project is focused on running AI models rather than training AI models, a field in which Nvidia Corp. (NVDA) chips dominate. Apple did not immediately respond to a request for comment. Apple has been playing catch-up with their tech peers in generative AI, the technology underpinning chatbots and other popular new tools. But the company is preparing to unveil a new strategy for artificial intelligence at its Worldwide Developers Conference next month.
Apple (AAPL) has been designing its own chips for years to power its devices, and development of homemade AI chips could position it well as the AI revolution ramps up. Some investors and analysts have become impatient as Apple has been tight-lipped when it comes to the company’s AI plans. Its approach is expected to focus on new proactive features that can assist users in their daily lives. Apple also has held talks with potential partners like Alphabet Inc.’s Google and OpenAI to supply generative AI services.
What Tim Cook said?
Chief Executive Tim Cook has suggested the tech giant is working on AI projects, and has hinted at an AI-software announcement at Apple’s upcoming Worldwide Developers Conference, from June 10-14.
“Generative AI and AI both are big opportunities for us across our products, and we’ll talk more about it in the coming weeks,” Cook said last week during Apple’s earnings call.
Apple’s next event
Apple is holding an event Tuesday where it is expected to unveil a new version of its iPad. Apple shares are down 3% year to date, compared to a 3% gain by the Dow Jones Industrial Average (DJIA), of which Apple is a component.
If Apple goes ahead with its own server processor, it would follow several of the largest tech companies in doing so. Amazon. com Inc.’s AWS, Google, Microsoft Corp. and Meta Platforms Inc. all operate data centers that run on in-house designed semiconductors to some extent. Such efforts have eroded the traditional dominance of Intel Corp.’s components.
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