Apple Pursues AI Chip Company Acquisitions to Enhance Server Processing
Apple's Strategic Moves in AI Server Chip Development
July 15 (Reuters) - Apple is looking to buy chip companies to bolster its efforts to make server processors for running AI, The Information reported on Wednesday, citing people familiar with the matter.
Acquisition Discussions and Industry Outreach
Here are some details:
Approaching Chip Startups
• The iPhone maker has approached chip startups to gauge their interest in a buyout and has spoken with bankers about possible deals, the report said.
Challenges with In-House AI Servers
• Apple's interest comes as it faces challenges with the performance of its in-house AI servers, which currently run on internally designed M2 Ultra chips, according to The Information.
Delays in "Baltra" AI Server Chip
• It had originally planned to ship a future version of its AI server chip, known internally as "Baltra", this year, but the project has been pushed back, people familiar with the matter told The Information.
• Apple did not immediately respond to a request for comment. Reuters could not independently verify the report.
Exploring Alternative AI Models and Partnerships
Testing Google's Gemini Models
• Earlier this year, Apple tried running Google's Gemini models on its internal servers as part of a Siri overhaul, but the Mac-based chips could not handle the large model, forcing the company to run parts of the revamped assistant on Nvidia chips in Google's cloud infrastructure, the report said.
Past Acquisition Activity and Financial Position
• Apple has historically avoided large acquisitions, last making a deal in January for Q.ai, an Israeli company working on AI technology for audio.
• The company had $45.57 billion in cash and cash equivalents as of March 28, the end of its second quarter.
Recent Chip Supply Deal with Broadcom
• Last week, Apple said it plans to spend over $30 billion under a multi-year chip supply deal with Broadcom, bolstering its domestic sourcing.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Sriraj Kalluvila)
