Apple is working on its AI chips for data centers

Apple is making its chip that will run software with artificial intelligence in data centers.

The project, which has the code name Project ACDC (Apple Chips in Data Centre), aims to use Apple’s skills in chip design to improve its server infrastructure. On Tuesday, Apple shares were up 1% before the bell.

In the past few years, the company has become a major chip designer thanks to the success of the semiconductors it makes. The iPhone, iPad, and Mac laptops utilize these semiconductors.

Apple’s server chip is likely to run AI models, also known as “inference,” as opposed to training AI models, where Nvidia excels.

CEO Tim Cook hinted last week that Apple plans to release a lot of AI-powered features in the next few months. Pressure is increasing due to the slow rollout of AI services.
“We continue to feel very bullish about our opportunity in generative AI, and we’re making significant investments,” Cook said a week ago.

The company is planning a virtual event for Tuesday to show off new iPad models. A new chip in some of these models could accelerate AI tasks on the devices.

Project ACDC has been going on for a while now, and no one knows when, if ever, the new chip will be shown off.

The report said that Apple and Taiwan Semiconductor Manufacturing Co. have been working together closely to design and start making these chips, but it’s still not clear if both companies have reached a final decision.