Apple Inc. is ready to deploy advanced artificial intelligence capabilities powered by internal servers. This strategic move is a major milestone in integrating his AI capabilities across Apple devices and will be aided by the company's custom processors.
According to knowledgeable sources, these servers are installed with high-end chips like Mac computers to handle complex AI tasks.
Apple's internal servers power AI
The introduction of high-end M2 Ultra and recently announced M4 processors in Apple's data centers is to support AI capabilities that are soon becoming a reality. The use of in-house chips fits with Apple's overall strategy to maintain control of its hardware and software ecosystem.
This approach enables Apple's servers to effectively and securely handle complex AI tasks such as generating images, summarizing news articles, and writing responses to long emails.
More basic AI tasks are performed on Apple devices such as iPhones, iPads, and Macs. These activities include presenting the user with an overview of missed notifications and her SMS messages received. This distribution of roles between devices and servers is intended to optimize performance while maintaining user privacy.
ACDC project and focus on privacy
The effort, known internally as the ACDC (Apple Chips in Data Centers) project, has been underway for several years with support from TSMC. Projects like this highlight Apple's commitment to user privacy.
When processing data on its servers, Apple keeps user information safe thanks to Secure Enclave technology, which sets it apart from its competitors.
Apple CFO Luca Maestri emphasized this stance by highlighting the company's policy of leveraging its own data center capabilities and third-party services. This hybrid model has worked well for Apple so far and will be the foundation of its future infrastructure strategy.
AI strategy and market position
Next month, Apple's AI strategy will be announced at the Worldwide Developers Conference (WWDC). The new approach introduces active AI capabilities to improve the everyday user experience. The company has reportedly held talks with other industry players such as Alphabet Inc.-owned Google and OpenAI to explore potential partnerships for generative AI services.
If Apple introduces AI capabilities powered by its own chips, it would put it on the same level as other tech giants like Amazon, Google, Microsoft and Meta, which are investing in their own server processors. This trend also marks a shift in reliance on traditional components such as Intel and signals the industry's move towards custom silicon solutions.
Following reports about Apple's AI advances, the company's stock rose modestly, reflecting investor optimism. As a result, as of this writing, Apple stock (AAPL) was up 1.11%, trading at $184.58.
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