Apple (AAPL.O) is reportedly developing its own chip to power artificial intelligence software in data centres, according to sources cited by the Wall Street Journal on Monday. The project, known internally as Project ACDC (Apple Chips in Data Center), aims to utilize Apple’s chip design expertise for its server infrastructure.
The company, whose shares were up 1% before the bell on Tuesday, did not respond to a Reuters request for comment. Apple has become a significant chip designer in recent years, thanks to the success of its semiconductors used in the iPhone, iPads, and Mac laptops. The reported server chip from Apple is expected to focus on running AI models, specifically for inference tasks, rather than training AI models, an area where Nvidia (NVDA.O) currently dominates, as per the WSJ report.
Amidst pressure due to a slow rollout of AI services, CEO Tim Cook indicated last week that Apple intends to introduce a range of features powered by the technology in the coming months. “We continue to feel very bullish about our opportunity in generative AI and we’re making significant investments,” Cook told Reuters.
Apple is set to host a virtual event on Tuesday, where it is anticipated to unveil new iPad models, potentially featuring a new chip designed to accelerate AI tasks on the devices.
Project ACDC has reportedly been in development for several years, though it remains uncertain when or if the new chip will be revealed, according to the WSJ report. Apple has been collaborating closely with Taiwan Semiconductor Manufacturing Co (2330.TW) to design and initiate production of such chips. However, it remains unclear if both companies have reached a definitive outcome, the report added.
