Apple accelerates AI plans with custom chip-powered data centers: Report

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iPads, and Macs. This approach aligns with Apple's generative AI ambitions, an area where it is trailing competitors. The technology powering tools like ChatGPT has driven the AI surge, prompting Apple to speed up its own initiatives.

At its upcoming Worldwide Developers Conference on June 10, the company is expected to outline its ambitious AI strategy. Reportedly, Apple's cloud-based AI operations will initially utilize its M2 Ultra chips, which debuted in the Mac Pro and Mac Studio, with future iterations incorporating the M4 chip. This shift from Apple's traditional emphasis on on-device processing represents a new direction, suggesting a move toward more complex AI tasks that require cloud computing.

Moreover, the report highlights that these cloud-based AI capabilities will support features like summarizing news articles and creating detailed responses to emails, while simpler tasks such as summarizing missed iPhone notifications will be handled by device-based processors. Apple's AI-driven services are set to roll out with iOS 18 this fall, aiming to balance user privacy with powerful AI functionality. The company is confident that its Secure Enclave approach can maintain data security.

While Apple initially plans to use its own data centers, it could eventually turn to external facilities, similar to its current iCloud services. Apple's chief financial officer, Luca Maestri, hinted at this strategy on a recent earnings call, noting that a mix of in-house and third-party resources has served the company well. The tech giant is investing heavily in its AI infrastructure, spending hundreds of millions of dollars on its cloud-based initiative over the past three years.