Apple reportedly working on its own AI-server chips

By Mike Murphy

Apple Inc. is working on developing its own artificial-intelligence chips for data-center servers, the Wall Street Journal reported late Monday.

The Journal, citing sources familiar with the matter, said the project, dubbed ACDC - for Apple Chips in Data Center - has been underway for several years with partner Taiwan Semiconductor Manufacturing Co. (TSM), but it is uncertain when - of if - it'll ever be unveiled.

According to the report, the project is focused on running AI models rather than training AI models, a field in which Nvidia Corp. (NVDA) chips dominate.

Apple did not immediately respond to a request for comment.

Apple (AAPL) has been designing its own chips for years to power its devices, and development of homemade AI chips could position it well as the AI revolution ramps up.

Some investors and analysts have become impatient as Apple has been tight-lipped when it comes to the company's AI plans. Chief Executive Tim Cook has suggested the tech giant is working on AI projects, and has hinted at an AI-software announcement at Apple's upcoming Worldwide Developers Conference, from June 10-14.

"Generative AI and AI both are big opportunities for us across our products, and we'll talk more about it in the coming weeks," Cook said last week during Apple's earnings call.

Apple is holding an event Tuesday where it is expected to unveil a new version of its iPad.

Apple shares are down 3% year to date, compared to a 3% gain by the Dow Jones Industrial Average DJIA, of which Apple is a component.

-Mike Murphy

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05-06-24 2107ET

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