Apple (NASDAQ:AAPL) is working on developing its own chip to run artificial intelligence (AI) software in data centers, the Wall Street Journal reported on Monday, citing sources familiar with the matter.
Apple stock rose roughly 1% in premarket trading Tuesday.
The project, internally named Project ACDC (Apple Chips in Data Center), aims to utilize Apple's expertise in chip design for the company’s server infrastructure. While this initiative has been in progress for several years, the exact timeline or potential release date remains uncertain, the report noted.
"We continue to feel very bullish about our opportunity in generative AI and we're making significant investments," CEO Tim Cook said in an interview with Reuters.
Apple's server chip will primarily focus on running AI models, a process known as inference, rather than training AI models.
The company has been working closely with Taiwan Semiconductor Manufacturing (TSM) to design and initiate production of these chips, though it's uncertain if the collaboration has delivered definitive results, according to the Wall Street Journal.