Apple Ventures into Data Center AI with Project ACDC

According to reports from the Wall Street Journal on Monday, Apple is delving into the development of its own chip tailored for running artificial intelligence (AI) software within data centers. Internally known as Project ACDC (Apple Chips in Data Center), the endeavor aims to harness Apple's expertise in chip design for bolstering its server infrastructure.

While Apple has not officially commented on the matter, its shares saw a 1% increase before Tuesday's opening bell. Over recent years, Apple has emerged as a significant player in chip design, largely driven by the success of its semiconductors powering devices like the iPhone, iPads, and Mac laptops.

The anticipated focus of Apple's server chip is on executing AI models, particularly inference tasks, as opposed to training AI models—a domain where Nvidia currently holds sway, as per the WSJ report.

In response to mounting pressure due to a gradual rollout of AI services, CEO Tim Cook hinted last week about Apple's intentions to unveil a slew of features driven by AI technology in the coming months. Cook expressed optimism about the company's prospects in generative AI and emphasized significant investments in this area.

Apple is slated to host a virtual event on Tuesday, where it is expected to unveil new iPad models, some potentially equipped with a new chip geared towards accelerating AI tasks performed on these devices.

Project ACDC has reportedly been in progress for several years, although it remains uncertain when, or if, the new chip will be revealed. Apple has collaborated closely with Taiwan Semiconductor Manufacturing Co. (TSMC) in designing and initiating production of such chips. However, the report indicates uncertainty regarding the definitive outcome of these collaborative efforts.

Apple Ventures into Data Center AI with Project ACDC