[Global] Apple Considering Acquisitions of AI Server Chip Firms... as It Tackles Delays in In-House Chip Development

Apple is reportedly evaluating acquisitions of companies involved in AI server semiconductor technology to bolster its competitive edge. Delays in developing its next-gen server chip have prompted the company to seek external technological solutions. According to major global outlets, Apple has expressed interest in acquiring multiple semiconductor startups specializing in AI server processors, discussing potential deals with investment banks. However, specific targets or terms remain undisclosed. Currently, Apple's internal AI servers utilize its self-designed M2 Ultra chip, which lacks sufficient computational power and efficiency for large AI models. Originally scheduled for release this year, the next-gen chip project 'Bilttra' has been delayed. In early 2024, Apple tested Google's Gemini AI model on its own servers for Siri reorganization but faced challenges processing large models with macOS chips, requiring NVIDIA chips via Google Cloud. Apple has historically taken a cautious approach to major acquisitions, with recent examples including the 2024 acquisition of Q.ai, an Israeli startup specializing in voice/audio AI. The company holds $45.57 billion in cash and cash equivalents as of March 2024, having also announced a multi-year semiconductor supply agreement with Broadcom and a $30 billion-plus investment plan.