Apple is developing custom AI chip for data centers – NewsBytes
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Apple is reportedly developing a proprietary chip designed specifically for powering artificial intelligence (AI) applications in data center servers. This initiative, known internally as Project ACDC (Apple Chips in Data Center), could potentially give Apple a significant competitive edge in the AI landscape. The company is leveraging its extensive experience in chip design from its range of products including iPhones, iPads, Apple Watch, and Mac computers for this project. However, the timeline for the chip’s launch remains undisclosed.
Apple is collaborating with Taiwan Semiconductor Manufacturing Company (TSMC), their long-standing chip production partner, to bring these AI chips to life. The server chip’s primary focus is expected to be on running AI models or inference rather than training them. However, it remains uncertain whether this partnership has yielded a tangible outcome yet. This strategic move by Apple aligns with tech competitors like Microsoft and Meta who are also heavily investing in generative AI.
Despite investor skepticism about Apple’s progress in AI, CEO Tim Cook has reassured that substantial investments are being made in this technology. During a recent earnings call, Cook expressed his belief in the transformative potential of AI and highlighted Apple’s unique combination of hardware, software, and services integration as a key differentiator. He emphasized that generative AI systems often demand substantial computing power supplied by data center servers.
Currently, most major tech companies depend on servers filled with NVIDIA chips. To reduce reliance on NVIDIA’s market dominance, estimated at over 80% for such chips, many tech giants are either exploring or have already started developing their own AI server chips. Google‘s tensor processing units are an example of a well-established internal AI server chip product. Apple’s track record and success in custom silicon design could give it a significant advantage in the AI arena.
Apple has been integrating its own processing chips into iPhones and iPads since 2010, and in 2017, it began adding AI-centric processors to its mobile chips. In 2020, Apple started replacing Intel chips in its Macs with its custom silicon. Despite the challenges faced in developing a cellular wireless chip to replace Qualcomm’s leading mobile chip, Apple remains committed to focusing on AI processes on its devices and remote servers accessed via the internet.
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