Apple Reportedly Developing Custom Data Center Processors with Focus on AI Inference

Apple is reportedly working on creating in-house chips designed explicitly for its data centers. This news comes from a recent report by the Wall Street Journal, which highlights the company's efforts to enhance its data processing capabilities and reduce dependency on third parties to supply the infrastructure. In the internal project called Apple Chips in Data Center (ACDC), which started in 2018, Apple wanted to design data center processors to handle the massive user base and increase the company's service offerings. The most recent advancement in AI means that Apple will probably serve an LLM processed in Apple's data center. The chip will most likely focus on inference of AI models rather than training.

The AI chips are expected to play a crucial role in improving the efficiency and speed of Apple's data centers, which handle vast amounts of data generated by the company's various services and products. By developing these custom chips, Apple aims to optimize its data processing and storage capabilities, ultimately leading to better user experiences across its ecosystem. The move by Apple to develop AI-enhanced chips for data centers is seen as a strategic step in the company's efforts to stay ahead in the competitive tech landscape. Almost all major tech companies, famously called the big seven, have products that use AI in silicon and in software processing. However, Apple is the one that seeminly lacked that. Now, the company is integrating AI across the entire vertical, from the upcoming iPhone integration to M4 chips for Mac devices and ACDC chips for data centers.