Apple Ventures into AI Chips for Data Centers

California: Apple is venturing into the development of its own chip designed to power artificial intelligence (AI) software in data centers, as reported by the Wall Street Journal on Monday, citing sources familiar with the matter.

The project, internally known as Project ACDC (Apple Chips in Data Center), aims to harness Apple’s expertise in chip design to enhance its server infrastructure, according to the report.

Apple, whose shares saw a 1% rise before the bell on Tuesday, did not respond to a Reuters request for comment.

The tech giant has emerged as a significant player in chip design in recent years, with its semiconductors powering iPhones, iPads, and Mac laptops.

The reported server chip from Apple is expected to focus on running AI models, particularly inference tasks, rather than training AI models, an area where Nvidia currently dominates, as per the WSJ report.

Amid mounting pressure due to a gradual rollout of AI services, CEO Tim Cook indicated last week that Apple intends to introduce a range of features powered by AI technology in the coming months.

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“We continue to feel very bullish about our opportunity in generative AI, and we’re making significant investments,” Cook told international news agency Reuters last week.

The company is set to host a virtual event on Tuesday, where it is anticipated to unveil new iPad models, some potentially equipped with a new chip designed to accelerate AI tasks on the devices.

Project ACDC has reportedly been in development for several years, although it remains uncertain when or if the new chip will be revealed, according to the WSJ report.

Apple has collaborated closely with Taiwan Semiconductor Manufacturing Co. (TSMC) to design and commence production of such chips. However, it remains unclear whether both companies have reached a definitive outcome, the report added.

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