Apple plans to develop a server chip to support its own artificial intelligence and may have compromised its fastest chip ever made to achieve this; a strategic collaboration with Broadcom, valued at $850 billion, is suggested.
The Apple "Baltra" processor could begin production in 2026.
Apple is working on the development of its first server chip specifically designed for artificial intelligence, a project codenamed "Baltra." Reports indicate that this chip is expected to enter mass production by 2026, in response to the growing demand for processing power required by AI-driven functions.
Apple's silicon design team in Israel, which was previously responsible for creating the processors that replaced Intel chips in Macs in 2020, is now leading the development of the artificial intelligence processor. As part of this new focus, Apple has decided to cancel the development of a high-performance chip for Mac that consisted of combining four smaller chips. This decision, made over the summer, aims to free engineers to concentrate on the Baltra project, indicating a shift in the company's priorities towards AI-related hardware.
To carry out this project, Apple is collaborating with Broadcom, leveraging advanced networking technologies that are necessary for artificial intelligence processing. While Apple typically designs its chips in-house, the collaboration with Broadcom is expected to focus on networking solutions, marking a new direction in their partnership.
Furthermore, it has been reported that Apple plans to use TSMC's advanced N3P process for the manufacturing of the AI chip, representing an upgrade from the technology that underpins its most recent processors, such as the M4. This move reflects Apple's commitment to improving performance and efficiency in its chip designs.
The Baltra chip is anticipated to play a crucial role in the deeper integration of artificial intelligence within Apple's ecosystem. By combining Broadcom's networking expertise with TSMC's advanced manufacturing techniques, Apple aims to compete more effectively with its rivals in the AI space and strengthen its presence in this industry.
Recently, Apple has also approached its manufacturing partner, Foxconn, to build AI servers in Taiwan, which will use Apple’s M-series chips and are intended to support AI features in devices such as the iPhone, iPad, and MacBook.
