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Apple To Develop A.I. Data Centre Chips

Apple (AAPL) is developing microchips to run artificial intelligence (A.I.) software in data centres, according to multiple media reports.

Known internally as “Project ACDC” (Apple Chips in Data Centres), the plan is for Apple to create and produce its own A.I. data centre chips, a market that is dominated by Nvidia (NVDA).

Apple has reportedly been working with Taiwan Semiconductor Manufacturing Co. (TSM) on the chip’s design and production, though it is unclear when the new A.I. chips will be available.

Media reports state that Apple’s new chips will likely focus on A.I. inference rather than on training A.I. models and applications.

A.I. inference is the process that trains machine learning models to draw conclusions from new data.

Apple is no stranger to designing and producing microchips. The company currently makes its own chips that are used in its iPhones, MacBook computers, and other electronic devices.

Other technology giants, including Alphabet, are also reportedly developing their own A.I. chips as part of efforts to lessen their reliance on third-party chip designers such as Nvidia.

Apple chief executive officer (CEO) Tim Cook said in February that the company is investing significantly in A.I. technologies and would make an A.I. announcement later this year.

Analysts widely expect that Apple will make an A.I. announcement at its Worldwide Developers Conference this June.

The stock of Apple has increased 5% in the last 12 months to trade at $181.71 U.S. per share.

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