Apple is teaming up with semiconductor developer Broadcom to launch its first server chips dedicated to artificial intelligence.
It follows Apple’s release on Wednesday of its latest updates to iOS, macOS, and other devices featuring new Apple Intelligence capabilities. Apple and Broadcom did not immediately respond to Decrypt’s request for comments.
Apple is collaborating with Broadcom on the chip’s networking features, according to a report by The Information on Wednesday, citing sources with “direct knowledge of the project.” Code-named Baltra, the AI-focused chip is expected to enter production in 2026.
Experts suggest that Apple’s collaboration with Broadcom aims to bring the server needs for its growing Apple Intelligence initiatives closer to home.
“Those capabilities can actually be processed on the phone, the iPad, the Mac, independently, but in some cases, they need to go to the cloud, things like writing tools, things like summarizing text, in some cases, summarizing articles,” Bloomberg’s Mark Gurman told Bloomberg TV. “And for that, you need your own server infrastructure.”
Founded in 1991, San Jose-based Broadcom develops semiconductor and software technologies. Its products are used in data centers, networking, and wireless communication, supporting various modern tech applications.
This new collaboration is the latest in a partnership between Apple and Broadcom that began in 2023 with a multi-year deal for the chip manufacturer to develop 5G radio frequency components for Apple products.
The new AI chip aims to meet the significant computing demands of Apple’s enhanced AI features while improving performance and energy efficiency. Apple’s Israel-based silicon design team will spearhead the development of the chip.
Earlier this month, Apple acknowledged that its current AI-related computer chips are made through partnerships with Google Cloud and Amazon Web Services to support its search and Apple Intelligence programs.
Others working with Apple to develop the new AI chip include Taiwan Semiconductor Manufacturing Company, which will be responsible for mass-producing the chip.
Apple’s AAPL stock rose briefly on Wednesday following the announcement of the partnership with Broadcom to $250 before falling to $247. Meanwhile, Broadcom’s AVGO stock rose 7.5% to $184.73 before slipping to $182.98 in after-hours trading.
Edited by Sebastian Sinclair