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Apple is working with Broadcom to develop its first in-house AI chip, which is expected to be in mass production by 2026. The chip, named Baltra, focuses on processing new data and forwarding it to a large-scale language model.
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Apple is working with Broadcom to develop its first in-house AI server chip, internally codenamed “Baltra,” The Information reported, citing people familiar with the matter.
Baltra chips are expected to be ready for mass production by 2026 and are designed to accelerate AI tasks, with a particular focus on inference. Core functionality enables the chip to process new data and interact with large-scale language models (LLMs) to generate output. This distinguishes it from AI training models.
Apple has selected Taiwan Semiconductor Manufacturing Company (TSMC) to manufacture its chips. The world's leading semiconductor foundry will use its advanced 3-nanometer process technology in production, the report said.
The tech giant began 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 from Bloomberg. The success of ChatGPT has led Apple to prioritize developing its own AI chips to remain 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 its strategy, the company plans to integrate new AI capabilities across its devices, enhance features like Siri, and introduce advanced features to improve the user experience.
According to Yahoo Finance, Apple shares briefly rose on the news of the AI chip development, reaching $250 at market open on Wednesday. Broadcom stock rose 5%.
Apple and Broadcom have a long-standing partnership, particularly in semiconductor components. Last May, Apple announced a multi-billion dollar, multi-year agreement with Broadcom to develop 5G radio frequency components and other wireless connectivity technologies. The agreement is part of Apple's strategy to source more parts from U.S. manufacturers and reduce its dependence on foreign suppliers.
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