Apple Inc. seems to have been developing a homegrown chip to run artificial intelligence tools in data centers. However, it’s not clear if the semiconductor will ever be deployed, as reported by the Wall Street Journal.
The Wall Street Journal explained that the project named as Project ACDC (Apple Chips in Data Center), plans to upgrade Apple’s chip design expertise for its server infrastructure, the report said. Furthermore, “We continue to feel very bullish about our opportunity in generative AI and we’re making significant investments,” CEO Tim Cook told Reuters in an interview.
This year Apple saw a drop in its trading value by 5.6 percent. However, on May 6, Monday it saw a rise of about 1.2 percent. When asked about further explanation a representative for the Cupertino, California-based company didn’t respond immediately.
Why this new initiative?
As reported by the latest IDC report, Apple’s has been facing a declining market share in the tablet market. Reportedly, during the span of Q1 2023 to Q1 2024, the iPad’s market share dropped from 35.2 percent to 32 percent. The drop is expected to portray a drop of about one million units between the Q1 2023 to Q1 2024.
Industry experts suggest that the new initiative has the potential to help Apple increase its market value which rose just 1.2 percent from a drop of 5.6 percent. It is believed that the loss can be attributed to the falling Apple tablet market.
Can Apple come back to the track?
The reports around the new initiative of building in-house chips can help Apple to add on more AI products which can run in its iPhones, Macs and other devices. However, Apple is all set to unveil a new strategy for artificial intelligence at its Worldwide Developers Conference next month.
Furthermore ‘If Apple goes ahead with its own server processor, it would follow several of the largest tech companies in doing so. Amazon.com Inc.’s AWS, Google, Microsoft Corp. and Meta Platforms Inc. all operate data centers that run on in-house designed semiconductors to some extent,’ the Wall Street journal concluded.
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