Apple is Developing AI Chips in Data Centers According to Report

ODSC - Open Data Science
2 min readMay 9, 2024

According to a report from the Wall Street Journal, Apple is developing specialized chips aimed at enhancing AI capabilities within data centers. The initiative, dubbed Project ACDC (Apple Chips in Data Center), represents Apple’s forward-looking strategy to compete in the rapidly evolving AI sector.

While the project has been under wraps for several years, it has come to light that Apple has no definite timeline for the completion of Project ACDC, as reported by sources familiar with the matter, and comes at a time when the company is looking to poach AI talent.

The development of these AI chips is a collaborative effort between Apple and Taiwan Semiconductor Manufacturing Co. (TSMC), focusing on design and production. However, the outcomes of these efforts remain under wraps, with no confirmed reports on whether they have produced tangible results.

The crux of the chip initiative is to focus on AI inference — a critical process where trained machine learning models make predictions based on new data. This is distinct from AI model training, a domain currently dominated by Nvidia.

Apple’s move towards developing inference capabilities indicates a strategic positioning to carve a niche in this specialized sector. In the broader tech landscape, other industry giants like Google have also ventured into creating their own AI inference server chips.

Amidst these developments, Apple’s CEO Tim Cook shared insights into the company’s AI ambitions in a statement earlier this year. “We are investing significantly in technology, which will be the cornerstone of our future innovations,” Cook remarked during the company’s quarterly earnings call.

He further hinted at an upcoming AI-related announcement expected at Apple’s Worldwide Developers Conference in June. Despite a 4% drop in overall revenue and declining iPhone sales, Apple’s fiscal performance exceeded expectations in the second quarter.

The resilience of Apple’s financial health was further highlighted by a staggering $110 billion share buyback announcement — the largest in its history — prompting a significant uptick in its stock price.

Tim Cook emphasized the company’s unique position in the new era of technology.We believe in the transformative power and promise of AI, and we believe we have advantages that will differentiate us in this new era,” Cook asserted to investors.

Originally posted on OpenDataScience.com

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