Apple is reportedly developing chips to run AI software in data centers

An apple develops chips to run artificial intelligence software in data centers, Wall Street Journal reported Tuesday.

The ACDC (Apple Chips in Data Center) project, which has been in the works for several years, has no clear timeline, the WSJ reported, citing people familiar with the matter.

The iPhone maker is working with Taiwan Semiconductor Manufacturing Co. on the design and manufacturing of the chip, although it remains uncertain whether the efforts have yielded any positive results, the report said.

The WSJ said Apple’s server chip is likely to be focused on AI inference rather than AI model training, an area experts say will continue to be dominated by US chip giant Nvidia.

In AI, inference is the process that trained machine learning models use to make inferences from brand new data. Other major tech companies, such as Google, have invested in developing their own AI server chips as part of an effort to differentiate themselves from chip designers.

Experts have pointed out that Apple is lagging behind in the AI ​​race, while rivals such as Microsoft have invested billions in AI technology and infrastructure.

CEO Tim Cook said in February that the company was “investing significantly” in the technology and would make an AI-related announcement later this year. Analysts expect the company to make the announcement at its Worldwide Developers Conference, scheduled for June.

In Apple’s last quarter revenue call on Thursday, Cook told investors that the company is continuing to invest in AI. “We believe in the transformative power and promise of AI, and we believe we have advantages that will set us apart in this new era,” he said.

Apple’s fiscal second-quarter earnings beat expectations despite a 4 percent drop in overall revenue amid a decline in iPhone sales. The company also announced a $110 billion share buyback on Thursday, the largest in its history, sending the stock price soaring.

Read The Wall Street Journal’s full report.