Apple Developing Homegrown AI Chips for Data Centers
- Krey Investments
- May 7, 2024
- 2 min read

Apple Inc. is making significant strides in the field of artificial intelligence (AI) by developing its own custom chips to power data centers. The project, internally codenamed Project ACDC (Apple Chips in Data Center), aims to leverage Apple’s chip design expertise for its server infrastructure1. Here are the key details:
The Need for AI Chips
As the demand for AI-driven applications grows, companies are increasingly investing in specialized hardware to accelerate AI workloads. Apple, which has been playing catch-up with its tech peers in generative AI, is now stepping up its game. The company aims to run AI software efficiently in data center servers, giving it a competitive edge.
Project ACDC: What We Know
Custom AI Chips: Apple’s homegrown chips will be specifically designed for AI workloads. Unlike traditional CPUs, these chips will excel at running AI models, particularly inference tasks (using pre-trained models to make predictions), rather than training new models.
Years in the Making: Project ACDC has been in development for several years. However, it remains uncertain when or if the project will be officially unveiled.
Collaboration with Taiwan Semiconductor Manufacturing Co (TSMC): Apple has been closely working with TSMC to design and initiate production of these AI chips. The partnership aims to yield high-performance, energy-efficient chips that can handle the demands of data centers.
CEO’s Optimism: Apple’s CEO, Tim Cook, expressed optimism about the company’s opportunity in generative AI. He emphasized that Apple is committed to making significant investments in this area1.
The Road Ahead
While Apple’s competitors, including Microsoft and Meta Platforms Inc., already operate data centers with in-house designed semiconductors, Apple’s entry into this space is a significant move. As the company continues to invest in AI, we can expect further developments in Project ACDC.
Apple’s foray into AI chips underscores its commitment to innovation and its desire to stay at the forefront of technology. As the project progresses, we’ll keep an eye out for any official announcements from Cupertino.
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