Apple partners with Broadcom to develop "Baltra," its first internal AI server chip

Key Takeaways

Apple is collaborating with Broadcom to develop its first in-house AI chip, which is expected to enter mass production by 2026.
The chip, named Baltra, focuses on processing new data and transferring it to large language models.

Apple is collaborating with Broadcom to develop its first internal AI server chip, internally named Baltra, according to The Information, citing people with knowledge of the matter .

Expected to be ready for mass production by 2026, Baltra's chip is designed to accelerate AI tasks, especially with a focus on decision-making. The main functionality allows the chip to process new data and interact with large language models (LLMs) to generate results. This will set it apart from AI training models.

Apple has chosen Taiwan Semiconductor Manufacturing Company (TSMC) to make the chip. The world's leading semiconductor foundry will use its advanced 3-nanometer process technology for production, the report notes.

The tech giant started working on developing its own server chips three years ago, but has ramped up efforts since OpenAI released ChatGPT in December 2022, according to a previous report. report from Bloomberg. The success of ChatGPT has prompted Apple to prioritize the development of its own AI chip to stay competitive in the AI market.

Apple wants to use high-performance chips, similar to those used in Macs, to power its cloud-based AI services. As part of the strategy, the company plans to integrate new AI features across its devices, enhancing capabilities like Siri and introducing advanced capabilities that improve the user experience.

After news of the AI chip development, Apple stock rose briefly, touching $250 at the market open on Wednesday, according to Yahoo Finance. Broadcom shares rose 5%.

Apple and Broadcom have a long-standing partnership, especially in the field of semiconductor components. Last May, Apple announced a multi-billion dollar, multi-year deal with Broadcom to develop 5G radio frequency components and other wireless connectivity technologies. The deal is part of Apple's strategy to source more parts from US manufacturers and reduce reliance on foreign suppliers.