WSJ says Apple is working on its own AI chip for data centers

Apple Inc. is developing a homegrown chip to run artificial intelligence tools in data centers, the Wall Street Journal reports, though it’s unclear whether the semiconductor will ever be deployed.

According to the Journal, citing unnamed people familiar with the matter, the effort would build on Apple’s previous efforts to make in-house chips that run in its iPhones, Macs and other devices. The server project within the company has been given the code name ACDC, the newspaper said.

Apple shares rose as much as 1.2% in late trading Monday. By the end of the year they were down 5.6%. A representative for the Cupertino, California-based company did not immediately respond to a request for comment.

Apple is catching up with its tech peers in the technology underpinning generic AI, chatbots and other popular new tools. But the company is preparing to unveil a new strategy for artificial intelligence at its Worldwide Developers Conference next month.

Bloomberg reported that its approach is expected to focus on new proactive features that can assist users in their daily lives. Apple has partnered with Alphabet Inc. to supply generic AI services. It has also held talks with potential partners like Google and OpenAI.

If Apple moves forward with its own server processors, it would follow many of the biggest tech companies in doing so. Amazon.com Inc. AWS, Google, Microsoft Corp. and Meta Platform Inc. All operate data centers that run on semiconductors designed to some extent in-house. Such efforts have chipped away at Intel Corp.’s traditional dominance of components.

– With assistance from Ian King.

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