Apple working on AI chips designed for data centres: Report

Apple's dominance in chip design for its iPhones, iPads, and Macs may be expanding to encompass data centres, according to a recent report by The Wall Street Journal.

The report details a project codenamed "ACDC" (Apple Chips in Data Center), which signifies Apple's potential foray into custom-designed artificial intelligence (AI) chips specifically for its data centre operations.

Focus on AI inference

The WSJ report suggests that the ACDC project has been in development for several years. These server chips are expected to prioritise AI inference, a process where trained machine learning models analyse and interpret new data.

Partnering with Taiwan Semiconductor Manufacturing Company (TSMC), a leading chip manufacturer, Apple aims to leverage their expertise in both design and production of these specialised AI chips.

Vertical integration strategy

Apple's reported development of in-house AI chips aligns with its well-established strategy of vertical integration. This approach allows the company to gain greater control over hardware design, potentially enhancing security and improving design flexibility.

Additionally, custom-designed chips could optimise the performance of Apple's data centres, ultimately benefiting future AI tools that rely on cloud processing.

Hints of larger AI push

Apple CEO Tim Cook has publicly acknowledged the company's significant investments in AI, hinting at a major AI-related announcement later in 2024.

The possibility of this announcement being unveiled at the upcoming Worldwide Developers Conference (WWDC) in June is a strong contender.

Cook further emphasised Apple's belief in "the transformative power and promise of AI," suggesting the company aims to differentiate itself in this rapidly evolving field.

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