According to the Wall Street Journal, Apple Inc. is creating its own chip designed for artificial intelligence applications in data centers. However, it is not certain whether this chip will be used.
The Wall Street Journal reported that Apple Inc. is working on a custom chip designed to operate artificial intelligence tools in data centers. It remains uncertain if this semiconductor will actually be used.
According to the Journal, which quoted sources who wished to remain anonymous, this project is an extension of Apple’s previous work to develop its own chips, which are used in iPhones, Macs, and other devices. The newspaper also mentioned that the company refers to the server project internally as ACDC.
Apple’s stock increased by up to 1.2% in Monday’s late trading session. Until the close of the day, they had decreased by 5.6% this year. A spokesperson for the company, based in Cupertino, California, did not immediately reply to a request for comment.
Apple is behind its technology rivals in generative AI, which powers chatbots and other emerging tools. Nevertheless, the company plans to reveal a new artificial intelligence strategy at its Worldwide Developers Conference next month.
Bloomberg reported that Apple’s strategy will likely emphasize new helpful features for daily use. Additionally, Apple has discussed collaborating with potential partners such as Google and OpenAI to provide generative AI services.
If Apple decides to create its own server processor, it will join other major tech firms that have done the same. Companies like Amazon.com Inc.’s AWS, Google, Microsoft Corp., and Meta Platforms Inc. run their data centers partly on custom-made chips. This move has weakened Intel Corp.’s long-standing market control.
What we think
I think Apple making its own AI chip for data centers is a big step. It could help them catch up in AI technology, where they are behind. If they succeed, it could change how they handle AI and improve their products.
This move might also challenge other big tech companies and reduce dependence on traditional chip makers like Intel. It’s exciting to see what will happen next!