Apple to Design its own AI Chips

According to the Wall Street Journal, Apple is in the process of developing its own chip specifically designed to run artificial intelligence software in data centers. This project, internally referred to as Project ACDC (Apple Chips in Data Center), seeks to capitalize on Apple's expertise in chip design for its server infrastructure.

While Apple's shares were up 1% before the announcement on Tuesday, the company did not respond to Reuters' request for comment.

In recent years, Apple has become a significant player in chip design, particularly with the success of its semiconductors used in the iPhone, iPad, and Mac laptops. The new server chip from Apple is expected to be tailored for running AI models, particularly for inference tasks, rather than for training AI models, an area where Nvidia currently holds dominance.

CEO Tim Cook has indicated that Apple plans to introduce a range of features powered by AI technology in the coming months amid pressure to accelerate the deployment of AI services.

Apple is expected to unveil new iPad models at a virtual event, some of which may come with a new chip designed to accelerate AI tasks performed on the devices.

Project ACDC has reportedly been in development for several years, but it remains uncertain when or if the new chip will be officially unveiled. Apple has been collaborating closely with Taiwan Semiconductor Manufacturing Co. (TSMC) on the design and production of these chips, although it is unclear if they have reached a final outcome yet.