In summary
- Apple has partnered with Broadcom to develop server chips dedicated to artificial intelligence, expected in 2026.
- The Baltra chip will be designed by Apple’s silicon team in Israel and manufactured by TSMC.
- The collaboration seeks to improve the performance of Apple Intelligence and reduce dependence on Google Cloud and AWS.
Apple is partnering with semiconductor developer Broadcom to launch its first server chips dedicated to artificial intelligence.
This follows Apple’s Wednesday release of its latest updates for iOS, macOS and other devices that include new Apple Intelligence capabilities. Apple and Broadcom did not immediately respond to 88’s request for comment.
Apple is collaborating with Broadcom on the chip’s networking features, The Information reported Wednesday, citing sources with “direct knowledge of the project.” The AI-focused chip, codenamed Baltra, is expected to go into production in 2026.
Experts suggest that Apple’s collaboration with Broadcom is aimed at bringing closer server needs for its growing Apple Intelligence initiatives.
“Those capabilities can be processed on the phone, the iPad, the Mac, independently, but in some cases, they need to go to the cloud, things like writing tools, text summaries, in some cases, article summaries,” Bloomberg’s Mark Gurman told Bloomberg TV. “And for that, you need your own server infrastructure.”
Founded in 1991, San Jose-based Broadcom develops semiconductor and software technologies. Its products are used in data centers, networks and wireless communication, supporting various modern technological applications.
This new collaboration is the latest in a partnership between Apple and Broadcom that began in 2023 with a multi-year agreement for the chipmaker to develop 5G radio frequency components for Apple products.
The new AI chip seeks to meet the significant computing demands of Apple’s AI functions while improving performance and power efficiency. Apple’s Israel-based silicon design team will lead development of the chip.
Earlier this month, Apple acknowledged that its current AI-related computer chips are manufactured through partnerships with Google Cloud and Amazon Web Services to support its search and Apple Intelligence programs.
Others working with Apple to develop the new AI chip include Taiwan Semiconductor Manufacturing Company, which will be responsible for mass production of the chip.
Apple’s AAPL shares rose briefly on Wednesday following the Broadcom partnership announcement to $250, before falling to $247. Meanwhile, Broadcom’s AVGO shares rose 7.5% to $184.73 before falling to $182.98 in after-hours trading.
Edited by Sebastian Sinclair
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