Apple to equip data centers with in-house processors

Apple Inc is to deliver some of its upcoming artificial intelligence (AI) features this year via data centers equipped with its in-house processors, as part of a sweeping effort to infuse its devices with AI capabilities.

The company is placing highend chips — similar to ones it designed for the Mac — in cloud computing servers designed to process the most advanced AI tasks coming to Apple devices, people familiar with the matter said.

Simpler AI-related features would be processed directly on iPhones, iPads and Macs, they said, asking not to be identified because the plan is still under wraps.

The move is part of Apple’s much-anticipated push into generative AI — the technology behind ChatGPT and other popular tools.

The company is playing catchup with big tech rivals in the area, but is poised to lay out an ambitious AI strategy at its Worldwide Developers Conference on June 10.

Apple’s plan to use its own chips and process AI tasks in the cloud was hatched about three years ago, but the company accelerated the timeline after the AI craze — fueled by OpenAI’s ChatGPT and Google’s Gemini — forced it to move more quickly.

The first AI server would use the M2 Ultra chip, which was launched last year as part of the Mac Pro and Mac Studio computers, though the company is already eyeing future versions based on the M4 chip.

Relatively simple AI tasks — such as providing users a summary of their missed iPhone notifications or incoming text messages — could be handled by the chips inside of Apple devices.

More complicated jobs, such as generating images or summarizing lengthy news articles and creating long-form responses in e-mails, would likely require the cloud-based approach — as would an upgraded version of Apple’s Siri voice assistant.

The move, coming as part of Apple’s iOS 18 rollout in the fall, represents a shift for the company.

For years, Apple prioritized ondevice processing, touting it as a better way to ensure security and privacy.

However, the components inside the processors can already safeguard user privacy, said people involved in the creation of the Apple server, called “Project ACDC” (Apple Chips in Data Centers). Apple uses an approach called Secure Enclave that can isolate data from a security breach.

For now, Apple is planning to use its own data centers to operate the cloud features, but it would eventually rely on outside facilities — as it does with iCloud and other services.

The Wall Street Journal reported earlier on some aspects of the server plan.

Apple chief financial officer Luca Maestri hinted at the approach on an earnings call last week.

“We have our own data center capacity and then we use capacity from third parties,” Maestri said after being asked about the company’s AI infrastructure.

“It’s a model that has worked well for us historically, and we plan to continue along the same lines going forward,” he said.