Key Points:
- Apple is reportedly developing chips for AI software in data centers under Project ACDC (Apple Chips in Data Center).
- Collaboration with Taiwan Semiconductor Manufacturing Co. is underway, although the timeline for the project remains uncertain.
- Apple’s AI efforts come amidst intensifying competition in the tech industry, with rivals like Microsoft making significant investments in AI technology.
- CEO Tim Cook hinted at an upcoming AI-related announcement, which is expected to be made at the Worldwide Developers Conference in June.
According to a report by the Wall Street Journal on Tuesday, Apple is developing chips tailored for running artificial intelligence (AI) software in data centers. The project, dubbed ACDC (Apple Chips in Data Center), has been underway for several years. Apple has been engaged in designing and producing these chips, collaborating with Taiwan Semiconductor Manufacturing Co. However, the report indicates uncertainty regarding the success of these efforts thus far.
Apple’s server chip is expected to focus primarily on AI inference. It aims to enable trained machine learning models to conclude brand-new data. This emphasis on inference differs from the training of AI models, an area largely dominated by Nvidia, a prominent American chip giant. Amidst the intensifying competition in AI technology, companies like Google have developed their own AI inference server chips, seeking to reduce reliance on external chip designers.
Observers note that Apple has trailed behind rivals such as Microsoft in the AI race, with the latter making significant investments in AI technology and infrastructure. Despite this, Apple’s CEO, Tim Cook, announced in February that the company was making substantial investments in AI and hinted at an upcoming AI-related announcement later in the year, with analysts anticipating its unveiling at the Worldwide Developers Conference scheduled for June.
During Apple’s recent quarterly earnings call, Cook reiterated its commitment to AI, emphasizing its transformative potential. He underscored Apple’s belief in possessing unique advantages that would set them apart in AI.
Despite a 4% drop in overall revenue attributed to declining iPhone sales, Apple exceeded expectations in its fiscal second-quarter earnings. Additionally, the company announced its largest-ever share buyback program amounting to $110 billion, resulting in a notable surge in its share price.
