Apple explores acquisitions to strengthen AI chip capabilities

Apple is looking to buy chip companies to bolster its efforts to make server processors for running AI.

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.

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.

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.

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.

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.

Last week, Apple said it ​plans to spend over $30 billion under a multi-year chip supply deal with Broadcom, bolstering its ​domestic sourcing. Reuters