(Reuters) – Apple is developing its own chips to run artificial intelligence programs in data centers, the Wall Street Journal reported on Monday, citing people familiar with the matter.
The project, internally codenamed Project ACDC (Apple Chips in the Data Center), aims to leverage Apple’s expertise in making chips for server infrastructure, the report said.
Apple, whose shares rose 1% in premarket trading on Tuesday, did not respond to a Reuters request for comment.
The company has become a major chip designer in recent years thanks to the success of semiconductors used in iPhones, iPads and Mac laptops.
Apple’s server chips will likely focus on running AI models, also known as inference, rather than training AI models, where Nvidia dominates, the Wall Street Journal reports.
Amid growing pressure over the slow adoption of artificial intelligence services, CEO Tim Cook hinted last week that Apple plans to unveil several tech-enabled features in the coming months.
“We are optimistic about our opportunities in generative AI and are making significant investments,” Cook told Reuters last week.
The company plans to hold a virtual event on Tuesday where it is expected to unveil new iPad models, some of which may come with a new chip designed to speed up artificial intelligence tasks performed on the device.
The ACDC project has been in the works for several years and it is uncertain when the new chip will be unveiled, the Wall Street Journal reported.
Reports suggest that Apple is working closely with a Taiwanese semiconductor manufacturing company to develop and begin production of such chips, and it is still unclear whether the two companies have reached a final decision.
(Reporting by Angela Christie in Bengaluru; Editing by Varun Hong and Arun Cuiyu)
