According to the Information, Apple is reportedly developing a custom AI chip, codenamed Baltra, to power its AI services and devices. The tech giant is partnering with Broadcom to integrate advanced networking technology into the chip. This collaborative effort highlights Apple's commitment to in-house chip development and its increasing focus on AI. The chip is expected to be ready for mass production by 2026.
In its efforts to catch up in the AI race, Apple has begun introducing its first generative AI features, collectively known as Apple Intelligence, for its iPhone, iPad, and Mac devices. While this is just the beginning, the company aims to expand its AI capabilities significantly. Apple is also investing in its own data centers equipped with custom-designed chips to power advanced AI tasks, ensuring a seamless AI experience across its product ecosystem.
As part of its AI strategy, Apple is diversifying its chip reliance. At the latest AWS re:invent, Benoit Dupin, Apple's senior director of machine learning and AI, emphasized the decade-long partnership between Apple and AWS. During this collaboration, Apple has utilized various AWS technologies, including the Graviton3, Trainium2, and Inferentia2 chips, which have played a crucial role in enhancing Apple's machine-learning capabilities. These technologies support data processing, training, optimization, and the development of Apple Intelligence.
Meanwhile, Bloomberg Intelligence notes that Apple's rumored collaboration with Broadcom further solidifies Broadcom's dominance in ASIC design. Broadcom already holds over 80% of the AI ASIC market and has a history of designing TPUs for Google. This partnership with Apple is expected to drive incremental growth in AI revenue for Broadcom beyond 2025-26 and likely expand its presence within Apple's supply chain.
Adding to Broadcom's momentum, Reuters reported that OpenAI is also collaborating with Broadcom, a development that could further solidify Broadcom's dominant position in ASIC design.
