Apple is reportedly working with Broadcom to develop its first server chip specifically designed for artificial intelligence (AI) processing, The Information reported on Wednesday, citing sources familiar with the matter. This move positions Apple alongside other tech giants that have developed proprietary chips to handle AI-intensive workloads and reduce dependence on Nvidia's costly and short-in-supply processors.
Also Read: OpenAI is Developing In-House AI Chip with Broadcom and TSMC: Report
Code-Named Baltra
Internally code-named Baltra, Apple’s AI chip is slated for mass production by 2026. The company plans to manufacture the chip using Taiwan Semiconductor Manufacturing Co.'s (TSMC) advanced N3P process, according to the report.
In 2022, Apple signed a multi-billion-dollar agreement with Broadcom to develop 5G radio frequency components. Earlier this year, at its annual developer conference, Apple revealed plans to leverage in-house server chips to support AI features across its devices.
Also Read: Meta Announces USD 10 Billion AI Data Center in Louisiana
Reducing Dependence on Nvidia
Apple has made significant progress in chip development, notably with its M-series processors, which replaced Intel chips in Mac laptops. However, like many major tech firms, Apple faces challenges in reducing reliance on Nvidia, a hurdle that Google has managed to overcome by also partnering with Broadcom for its AI chips.
Broadcom's primary competitor in this domain is Marvell. Marvell’'s Chief Operations Officer Chris Koopmans, earlier this month said the custom chip market is projected to reach USD 45 billion by 2028, with Broadcom and Marvell expected to dominate the sector, according to a Reuters report.
