Apple Develops AI Chip for Data Center Servers

Apple is reportedly in the process of creating its own chip specifically designed to operate artificial intelligence (AI) software in servers located in data centers. This initiative, known internally as Project ACDC (Apple Chips in Data Center), could potentially provide Apple with a competitive edge in the ongoing AI race, as reported by the Wall Street Journal.

While Apple has established itself as a key player in designing chips for its range of consumer devices over the last decade, including iPhones, iPads, Apple Watch, and Mac computers, Project ACDC will mark its foray into server chips. Although the exact timeline for unveiling this new chip remains uncertain, Apple is expected to make various AI-related product announcements at its Worldwide Developer Conference scheduled for June.

Collaborating closely with chip-making partner Taiwan Semiconductor Manufacturing Co., Apple has been working on the design and production of these specialized chips. However, the outcome of these efforts is yet to be confirmed.

It is anticipated that Apple’s server chip will be tailored for running AI models (specifically for inference), contrasting with Nvidia’s dominance in AI model training. The development of an Apple server chip comes amidst substantial investments and strategic shifts by competitors like Microsoft and Meta, who are swiftly adapting their operations to leverage generative AI technologies following the widespread adoption of services like OpenAI’s ChatGPT.