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Apple Sets Sights on NVidia with AI Chips

Apple has set sights on Nvidia and other chip makers as the artificial intelligence arms race heats up.  Reports indicate that the iPhone maker is developing chips that will be used to run artificial intelligence software in data centers. Apple Chips in Data Center or ACDC is the project the company is using to leverage its chip design expertise as it sees opportunities around the AI revolution.

Apple AI Chips

The push to make chips to power various AI models is not surprising, as Apple has emerged as a significant chip designer in recent years. The company already designs chips used in its hardware products, including iPhone, iPad, and Mac Laptops.  Its ACDC project seeks to develop chips that will be used to run AI models rather than for training AI models.

While it is unclear when Apple’s new set of AI chips will hit the market, Project ACDC has been in the works for many years. Likewise, it is believed the tech giant has made significant progress as it looks to tap into the massive opportunity around chips to power the AI revolution. The company already has a working relationship with Taiwan Semiconductor Manufacturing, which it uses to design and initiate the manufacture of various chips.

Apple joins a growing list of companies that are increasingly developing their own AI server chips or exploring the possibility. The push comes as the companies look to reduce their reliance on Nvidia, which produces some of the most expensive AI chips, going for up to $40,000 a chip. Currently, Nvidia commands an 80% market share in AI chips.

Google is one of the companies that has been working on AI chips since it started its project in 2013. OpenAI, which has been making waves on AI, is also discussing beginning its internal chip project to take on Nvidia. Apple has the most extended history among its peers and has successfully designed custom silicon. Consequently, it stands a good chance of taking on Nvidia on AI chips.

AI Arms Race

Confirming that Apple is working on AI chips should help settle concerns that the company was lagging in the AI arms race. In recent years, there have been concerns about the company lagging as Microsoft and Google continue investing billions of dollars in developing their AI infrastructure.

Microsoft has enjoyed the most significant bump tied to the artificial intelligence frenzy owing to its billions of investments in ChatGPT’s parent, OpenAI. Likewise, the company has successfully integrated AI search capabilities into its search engine as it looks to take on Google. Google has also unveiled its AI-powered chatbot, Bard, as it enhances its online user experience.

Meta is another company that has been aggressive amid the AI race, having leveraged the technology to enhance its multi-billion advertising business. The company has improved its apps’ targeted advertising and engagement levels with AI, consequently attracting more advertising budgets.

Apple Chief Executive Officer Tim Cook has sought to quash concerns, insisting they are investing significantly. The company has also echoed its commitment to AI technology’s transformative power and promise.


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