Apple Reportedly Developing Custom Data Center Processors with Focus on AI Inference

[AleksandarK]

Apple is reportedly working on creating in-house chips designed explicitly for its data centers. This news comes from a recent report by the Wall Street Journal, which highlights the company's efforts to enhance its data processing capabilities and reduce dependency on third parties to supply the infrastructure. In the internal project called Apple Chips in Data Center (ACDC), which started in 2018, Apple wanted to design data center processors to handle the massive user base and increase the company's service offerings. The most recent advancement in AI means that Apple will probably serve an LLM processed in Apple's data center. The chip will most likely focus on inference of AI models rather than training.

The AI chips are expected to play a crucial role in improving the efficiency and speed of Apple's data centers, which handle vast amounts of data generated by the company's various services and products. By developing these custom chips, Apple aims to optimize its data processing and storage capabilities, ultimately leading to better user experiences across its ecosystem. The move by Apple to develop AI-enhanced chips for data centers is seen as a strategic step in the company's efforts to stay ahead in the competitive tech landscape. Almost all major tech companies, famously called the big seven, have products that use AI in silicon and in software processing. However, Apple is the one that seemingly lacked that. Now, the company is integrating AI across the entire vertical, from the upcoming iPhone integration to M4 chips for Mac devices and ACDC chips for data centers.



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[Onasi]

I see that Apple is on the same dubious track as everyone else with the current AI bubble. You might even say it’s a highway to hell.
…I’ll see myself out.

 

[Guwapo77]

This will be a very interesting space to watch over the next decade. Apple has proven themselves to be some damn good chip designers, but can they put a dent in the server sector?

 

[dir_d]

This will be a very interesting space to watch over the next decade. Apple has proven themselves to be some damn good chip designers, but can they put a dent in the server sector?

This is all for their own garden, they want to use their own Hardware/Software from the cloud down. Build that walled garden to the Heavens.

 

[cvaldes]

This will be a very interesting space to watch over the next decade. Apple has proven themselves to be some damn good chip designers, but can they put a dent in the server sector?

They will not sell these chips. They will be used to give them an advantage over their competitors in a broad spectrum of services for their users.

In the same way Apple does not sell A-series nor M-series SoCs to other companies who wish to make products based on Apple Silicon. The chips are for Apple's own proprietary hardware designs.

This goes back to Apple's fundamental business philosophy: Apple views itself primarily as a software company whose software and services run best on their proprietary hardware. Even though they book most of their revenue through hardware sales, their main focus is software.

Once a person comprehends this, Apple's business actions are very logical.

Apple doesn't want to sell server chips. They want to run their own proprietary AI models on their own proprietary server hardware to benefit a large swath of Apple customers.

I speculated this exact scenario multiple times here before. My guess is that ever since Apple started spinning their own silicon, they put some chips in test servers to gauge performance and used their findings to help develop Apple Silicon into a scalable architecture.

 

[Redwoodz]

They will not sell these chips. They will be used to give them an advantage over their competitors in a broad spectrum of services for their users.

In the same way Apple does not sell A-series nor M-series SoCs to other companies who wish to make products based on Apple Silicon. The chips are for Apple's own proprietary hardware designs.

This goes back to Apple's fundamental business philosophy: Apple views itself primarily as a software company whose software and services run best on their proprietary hardware. Even though they book most of their revenue through hardware sales, their main focus is software.

Once a person comprehends this, Apple's business actions are very logical.

Apple doesn't want to sell server chips. They want to run their own proprietary AI models on their own proprietary server hardware to benefit a large swath of Apple customers.

I speculated this exact scenario multiple times here before. My guess is that ever since Apple started spinning their own silicon, they put some chips in test servers to gauge performance and used their findings to help develop Apple Silicon into a scalable architecture.

Good points, didn't think of it that way. Haha... now I know why Jensen does what he does. He wants to be like Steve!

 

[Guwapo77]

They will not sell these chips. They will be used to give them an advantage over their competitors in a broad spectrum of services for their users.

In the same way Apple does not sell A-series nor M-series SoCs to other companies who wish to make products based on Apple Silicon. The chips are for Apple's own proprietary hardware designs.

This goes back to Apple's fundamental business philosophy: Apple views itself primarily as a software company whose software and services run best on their proprietary hardware. Even though they book most of their revenue through hardware sales, their main focus is software.

Once a person comprehends this, Apple's business actions are very logical.

Apple doesn't want to sell server chips. They want to run their own proprietary AI models on their own proprietary server hardware to benefit a large swath of Apple customers.

I speculated this exact scenario multiple times here before. My guess is that ever since Apple started spinning their own silicon, they put some chips in test servers to gauge performance and used their findings to help develop Apple Silicon into a scalable architecture.

Interesting perspective and it makes sense.