Apple Reportedly Working To Join The Ranks Of Microsoft, Amazon, Meta By Developing Its Own AI Chips For Data Centers

Apple Inc. AAPL is reportedly working on its own artificial intelligence chips for data centers, a move that could potentially disrupt the market. However, the project’s future is still uncertain.

What Happened: The project, codenamed ACDC, is an extension of Apple’s existing in-house chip efforts for its devices, reported The Wall Street Journal, citing people familiar with the matter.

The tech giant has been working with its chip-making partner Taiwan Semiconductor Manufacturing TSM to design and commence the production of these chips. However, there’s uncertainty surrounding whether this collaboration has produced a concrete outcome

Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.

If the project comes to fruition, Apple would join the ranks of other tech giants like Inc. AMZN, Alphabet Inc. GOOG GOOGLMicrosoft Corp. MSFT, and Meta Platforms Inc. META, who already use their own designed semiconductors in their data centers.

However, Bloomberg columnist Mark Gurman cast doubt on the report, stating that a project initiated by Apple in 2018 was canceled. Gurman also cited cost, lack of differentiation, and the on-device nature of Apple’s LLM as reasons why he doesn’t believe Cupertino would pursue its own AI server chips.

Benzinga has reached out to Apple and this article will be revised upon receipt of a comment.

See Also: Tesla Investor Ross Gerber Calls Warren Buffett ‘Tough As Nails Businessman’ After Berkshire Hathaway Dumps Apple: ‘Don’t Let That Soft Mid Western Demeanor Fool You’

Why It Matters: Apple has been striving to keep pace with its technology counterparts in generative AI. The company is now gearing up to introduce a fresh approach to artificial intelligence at its upcoming Worldwide Developers Conference next month.

Earlier this year, Apple acquired Canadian AI startup DarwinAI as part of its push into generative AI. Apple CEO Tim Cook also expressed confidence in Apple’s AI prospects, despite concerns from investors about the tech giant’s position in the AI race.

Moreover, Apple has been exploring partnerships to enhance its AI capabilities. The company is reportedly in talks with ChatGPT-parent OpenAI to incorporate the startup’s AI technology into the upcoming iPhone features.

Photo Courtesy:

Check out more of Benzinga's Consumer Tech coverage by following this link.

Read Next: Apple’s Q2 Earnings, iPhone Sales Slump, And A Massive $110B Stock Buyback: This Week In Appleverse

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Market News and Data brought to you by Benzinga APIs
Posted In: NewsTechMediaACDCAI Chipsartificial intelligencebenzinga neuroConsumer Techdata centersin-house chip
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!