In a strategic move to enhance its artificial intelligence capabilities, Apple is collaborating with semiconductor manufacturer Broadcom to develop its first AI-focused server chip, according to industry sources familiar with the project.
The chip, internally code-named Baltra, aims to handle the growing computing demands of Apple's AI features, including Siri and Maps services that operate through cloud processing. This development marks Apple's entry into specialized AI server hardware, expanding beyond its current Apple Silicon chips used in consumer devices.
The partnership focuses heavily on networking technology, a critical component that enables devices to connect to networks for AI processing. Sources indicate that Apple plans to complete the chip design within the next 12 months, with mass production expected to begin in 2026.
The project will utilize advanced manufacturing processes from Taiwan Semiconductor Manufacturing Company (TSMC), Apple's longtime chip manufacturing partner. This development could potentially reduce Apple's reliance on Nvidia, the current leader in AI chip technology.
This news comes as Apple rolls out enhanced AI features across its ecosystem. The company recently introduced ChatGPT integration for newer iPhone and Mac devices, allowing Siri to suggest and provide ChatGPT responses directly within its interface.
The announcement had a positive impact on the stock market, with Broadcom shares rising approximately 6% following the news. This collaboration represents a notable step in Apple's strategy to strengthen its position in the rapidly evolving AI technology landscape.
The development of custom AI server chips aligns with Apple's broader vision of expanding its AI capabilities while maintaining control over its hardware infrastructure, a approach that has defined the company's success in consumer electronics.