Apple Inc., the renowned maker of iPhones, is reportedly developing its own, internal Artificial Intelligence (AI) chips to power AI software on servers in its data centers, according to a recent report from The Wall Street Journal.
Apple, traditionally recognized for their products like iPhones, iPads, and Macs is said to be partnering with Taiwan Semiconductor Manufacturing Co. (TSMC) on this venture. This endeavor, known internally as "ACDC" (Apple Chips in Data Center), is aimed at enabling Apple to have full control of its hardware for enhancing security, flexibility in design, as well as improving its data center performances.
The Silicon Valley tech giant has previously proven its competency in chip design, with its chips being integrated into iPhones, iPads, and Mac laptops for many years. With TSMC's assistance in design and production, Apple is now channeling this expertise into the realm of AI chip production.
Project ACDC has been under development for many years, though it remains uncertain when the new chip will be launched to the public, according to the Wall Street Journal.
There are also reports that Foxconn has already begun assembling Apple AI servers that incorporate the M2 Ultra chip, and are preparing to assemble AI servers powered by an M4 chip by the end of 2025.
Apple's latest venture comes in the wake of announcements from other tech behemoths like Google, Amazon, and Meta, which are also moving towards developing proprietary AI chips. In addition, Apple has hinted at its intent to integrate Google's Gemini AI tools into its iPhone Operating System (iOS), aiming to launch an AI-enhanced iOS 18 at the Worldwide Developers Conference (WWDC), scheduled for June.
Apple has been engaging in significant related activities since the beginning of the year, hiring staff, acquiring companies, and updating hardware to design an iPhone with generative AI capabilities. Moreover, Apple is said to be developing its own large language model, named AppleGPT, to compete with the likes of OpenAI's ChatGPT.
Despite acquiring 21 AI startups since 2017, the California-based company's progression in developing in-house AI capabilities has allegedly been slower than anticipated. However, this does not appear to deter Apple from breaking new ground in the development of AI-enhanced server chips.