Apple has been quietly working on developing its own chips to run artificial intelligence software in data centers, according to a recent report by the Wall Street Journal.
This project, known as Project ACDC (Apple Chips in Data Center), has been ongoing for several years, but there is no clear timeline for its completion, the report stated, citing sources familiar with the matter.
Apple has been collaborating with Taiwan Semiconductor Manufacturing Co. on the design and production of these chips, but it remains uncertain whether the efforts have yielded any significant results.
The server chip, if successful, is expected to focus on AI inference rather than training AI models, which is an area dominated by American chip giant Nvidia.
Other major tech companies, such as Google, have also invested in developing their own AI inference server chips to reduce their reliance on external chip designers.
Apple, however, has been lagging behind its competitors in the AI race, with rivals like
Microsoft having invested billions in AI technology and infrastructure.
Apple's CEO, Tim Cook, has expressed confidence in the company's AI capabilities, stating that Apple is "investing significantly" in the technology and will make an AI-related announcement later this year.
Analysts expect this announcement to be made at the company's Worldwide Developers Conference in June.
In Apple's latest quarterly earnings call, Cook reiterated the company's commitment to AI, saying, "We believe in the transformative power and promise of AI, and we believe we have advantages that will differentiate us in this new era." Despite a 4% decline in overall revenue due to falling iPhone sales, Apple's fiscal second-quarter earnings still beat expectations.
The company also announced a record-breaking $110 billion share buyback, which led to a surge in its share price.
CONCLUSION
Apple's strategic focus on developing AI chips for data centers underscores its commitment to innovation and staying competitive in the rapidly evolving tech landscape. With CEO Tim Cook's emphasis on the transformative power of AI and the company's recent financial moves, Apple is poised to make significant strides in the AI domain, setting the stage for future advancements and growth.
