Key facts
- Apple is exploring acquisitions of chip companies to improve its AI server processors.
- The company has approached chip startups and consulted bankers about potential deals.
- Apple's current in-house AI servers use M2 Ultra chips, which have faced performance challenges.
- A planned future AI server chip, 'Baltra', has been delayed.
- Apple's chips could not handle Google's Gemini models during a Siri overhaul, leading to reliance on Nvidia chips in Google's cloud.
- Apple previously acquired Q.ai, an Israeli AI audio technology firm.
Apple is actively seeking to acquire chip companies to enhance its capabilities in developing server processors for artificial intelligence applications, according to a report by The Information. The iPhone maker has reportedly reached out to chip startups to explore buyout possibilities and has engaged with bankers to discuss potential deals.
The company's interest stems from challenges it faces with the performance of its current in-house AI servers, which utilize internally designed M2 Ultra chips. A planned future AI server chip, codenamed 'Baltra', has reportedly been delayed from its original shipment target this year.
In a recent test, Apple attempted to run Google's Gemini models on its internal servers as part of a Siri overhaul. However, the Mac-based chips were unable to handle the large model, necessitating the use of Nvidia chips within Google's cloud infrastructure for parts of the revamped assistant.
Historically, Apple has shied away from large acquisitions, with its last significant deal being the January acquisition of Q.ai, an Israeli firm specializing in AI technology for audio. As of March 28, Apple held $45.57 billion in cash and cash equivalents. Last week, the company announced plans to invest over $30 billion in a multi-year chip supply agreement with Broadcom, reinforcing its domestic sourcing strategy.