Apple is collaborating with semiconductor developer Broadcom to launch its first server chips dedicated to artificial intelligence. This comes after Apple released updates on Wednesday for iOS, macOS, and other devices, featuring new Apple Intelligence capabilities. Both Apple and Broadcom have not yet responded to Decrypt’s request for comment.
According to a report by *The Information* on Wednesday, which cited sources with “direct knowledge of the project,” Apple is working with Broadcom on the chip’s networking features. Code-named “Baltra,” the AI-focused chip is expected to enter production in 2026.
Experts suggest that Apple’s collaboration with Broadcom is aimed at bringing the server needs for its expanding 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 communications, supporting various modern technological applications.
This new collaboration is the latest development in a partnership between Apple and Broadcom that began in 2023 with a multi-year deal for Broadcom to manufacture 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 both performance and energy efficiency. Apple’s Israel-based silicon design team will lead 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.
Other companies working with Apple to develop the new AI chip include ****** Semiconductor Manufacturing Company, which will be responsible for the mass production of 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