Apple Is Developing AI Chips for Data Centers, Seeking Edge in Arms Race

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By Aaron Tilley and Yang Jie

(The Wall Street Journal) — Apple has been working on its own chip designed to run artificial intelligence software in data center servers, a move that has the potential to give the company an advantage in the AI arms race.

Over the past decade, Apple has emerged as a leading player designing chips for iPhones, iPads, Apple Watch and Mac computers. The server project, which is internally code-named Project ACDC — for Apple Chips in Data Center — will bring this talent to bear for the company’s servers, according to people familiar with the matter.

Project ACDC has been in the works for several years and it is uncertain when the new chip will be unveiled, if ever. Apple has promised many new AI products and announcements at its Worldwide Developer Conference in June.

An Apple spokesman declined to comment.