Apple (AAPL.O) is developing its own chip to run artificial intelligence software in data centers, the Wall Street Journal reported on Monday, citing people familiar with the matter.

project, internally codenamed as Project ACDC (Apple Chips in Data Center), aims to leverage Apple's chip design expertise for its server infrastructure, the report said.

Apple, whose shares were 1% higher before the bell on Tuesday, did not respond to a Reuters request for comment.

The company has emerged as a major chip designer in recent years, thanks to the success of its semiconductors that are used in the iPhone, iPads and Mac laptops.

Apple's server chip will likely be focused on running AI models, also known as inference, rather than in training AI models, where Nvidia (NVDA.O) is dominant, the WSJ report said.

Amid growing pressure due to a slow roll out of AI services, CEO Tim Cook had last week signaled that Apple plans to unveil a raft of features powered by the technology in the coming months.

"We continue to feel very bullish about our opportunity in generative AI and we're making significant investments," Cook told Reuters last week.

The company plans to hold a virtual event on Tuesday where it is expected to showcase new iPad models, some of which could come with a new chip aimed at speeding up AI tasks carried out on the devices.

Project ACDC has been in the works for several years and it is uncertain when the new chip will be unveiled, if ever, the WSJ report said.

Apple has been closely working with Taiwan Semiconductor Manufacturing Co (2330.TW), opens new tab to design and initiate production of such chips and that it remains uncertain whether both companies have yielded a definitive result, the report said.

By: DocMemory
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