- Transforming the AI Landscape: Apple Takes on Nvidia with New Chips
Apple CEO Tim Cook Apple/dpa
Apple is currently developing specialized semiconductors that will enable the corporation to use artificial intelligence (AI) in its data centers in the future. This is reported by CNBC. The ACDC project (Apple Chips in the Data Center) has been in the works for some time. According to the report, it is still unclear when Apple will be able to complete the project. Apple apparently wants to make itself independent from the quasi-monopolist Nvidia with this.
Apple CEO Tim Cook already announced in February that Apple would significantly invest in this technology and make an AI-related announcement soon.
Apple utilizes TSMC’s know-how for AI chip development
Apple is working with Taiwanese semiconductor manufacturer TSMC (Taiwan Semiconductor Manufacturing Co.) on the design and production of the chip for the ACDC project. According to CNBC, Apple’s server chip is likely focused on AI inferences. This area is currently dominated by American AI chip giant Nvidia. If the report is confirmed, Apple would enter into direct competition with Nvidia. This would likely excite many Apple shareholders, as Nvidia has recorded massive growth rates in sales and profits. The corporation, with a market value of more than one trillion dollars, is one of the most valuable companies worldwide. It would be interesting if Apple were to take cues from this high-flyer.
Apple’s primary goal, according to CNBC, is to become more independent from chip designers with its own AI inference server chips. Experts point out that Apple lags behind competitors like Microsoft in the AI race, who have invested billions in AI technology and infrastructure. This enabled Microsoft founder Bill Gates to reposition his company.
Apple CEO Tim Cook emphasizes importance of AI for his company
In Apple’s most recent quarterly report, CEO Tim Cook reiterated last week the importance of AI for his company: “We believe in the transformative power and promise of AI and we believe we have advantages that will make us stronger in this new era,” Cook said.
Despite a four percent drop in sales, Apple’s profits exceeded expectations in the second quarter. The corporation generated a worldwide total of $90.75 billion. Profit amounted to $23.64 billion .
At the same time, the company announced the largest share buyback in its history at $110 billion. This led to a double-digit increase in Apple’s share price last Friday. By the end of 2023, Apple had a global workforce of over 161,000.