Apple has been developing its own chip that is intended to run AI programmes on data centre servers in an effort to get an advantage in the race for artificial intelligence, according to a report by the Wall Street Journal.
TakeAway Points:
- Apple has been developing a processor that is intended to run artificial intelligence applications on data centre servers. According to the report, it may have an advantage in the AI arms race as a result of this.
- According to the report, Project ACDC (Apple Chips in Data Center), which has been in the works for several years, has no set timeframe; however, Apple will utilise this expertise for the company’s servers.
- Apple’s server chip is expected to prioritise AI inference over training AI models, the latter of which is expected to be dominated by Nvidia, the large American chip manufacturer.
Apple Chips in Data Centre
Apple has become a major player in the chip design industry during the last ten years, creating semiconductors for Mac computers, iPads, iPhones, and the Apple Watch. According to those familiar with the matter, the server initiative, internally known as initiative ACDC (for Apple Chips in Data Centre), will utilise this expertise for the company’s servers.
According to the report, Taiwan Semiconductor Manufacturing Co. and the iPhone maker have been collaborating on the design and manufacturing of the chip, although it is unclear if these efforts have produced any useful outcomes.
AI Inferences and Apple’s Server Chip
As per the report, Apple’s server chip is expected to prioritise AI inference over training AI models, the latter of which is expected to be dominated by Nvidia, the large American chip manufacturer.
The method by which machine learning models that have been taught to make inferences from fresh data are called inferences in AI. Seeking to break free from chip designers, other major tech giants like Google have also invested in developing their own AI inference server processors.
Analysts have noted that Apple lagged behind competitors like Microsoft in the AI race, despite the latter company having made billion-dollar investments in AI infrastructure and technology.
In February, CEO Tim Cook stated that the business was “spending considerably” on AI and that an announcement in this area would be made later in the year. Analysts anticipate that the corporation will reveal the news during its June Worldwide Developers Conference.
Cook informed investors during Apple’s most recent quarterly earnings call on Thursday that the business would keep making investments in AI.
“We believe in the transformative power and promise of AI, and we believe we have advantages that will differentiate us in this new era,” he said.
Apple’s Largest-ever $110 Billion Share Buyback
Apple’s fiscal second-quarter earnings beat expectations despite overall revenue dropping 4% amid falling iPhone sales. The company also announced a $110 billion share buyback on Thursday, the largest in its history, resulting in a jump in share price.
Following last year’s $90 billion authorization, Apple revealed that its board had approved $110 billion in share repurchases, a 22% increase. Based on data from Birinyi Associates, it is the greatest buyback in history, surpassing Apple’s prior repurchases.
