Apple Inc. is poised to unveil some of its upcoming artificial intelligence features this year. These features will be delivered not only through software updates but also via data centers equipped with Apple’s in-house processors. This move is part of a comprehensive strategy to infuse Apple devices with advanced AI capabilities.
The first AI server chips to be deployed will be the M2 Ultra, which was introduced last year as part of the Mac Pro and Mac Studio computers. However, Apple is already looking ahead to future versions based on the M4 chip. According to sources familiar with the matter, the company is integrating high-end chips, similar to those designed for the Mac, into cloud-computing servers specifically engineered to handle the most demanding AI tasks destined for Apple devices. Simpler AI-related features, on the other hand, will be processed directly on iPhones, iPads, and Macs.
This strategic shift is part of Apple’s anticipated foray into generative artificial intelligence, the technology that powers ChatGPT and other popular tools. While the company has been playing catch-up with its Big Tech rivals in this area, it is expected to unveil an ambitious AI strategy at its Worldwide Developers Conference on June 10.
Apple’s decision to utilize its own chips and process AI tasks in the cloud was initiated around three years ago. However, the company accelerated its timeline after the recent surge in AI popularity, fueled by OpenAI’s ChatGPT and Google’s Gemini. The initial AI server chips will be the M2 Ultra, but the company is already planning future versions based on the M4 chip.
Relatively straightforward AI tasks, such as providing users with a summary of missed iPhone notifications or incoming text messages, could be handled by the chips embedded within Apple devices. More complex tasks, such as image generation, news article summarization, and extended email responses, would likely require the cloud-based approach, as would an upgraded version of Apple’s Siri voice assistant.
This move, set to be implemented as part of Apple’s iOS 18 rollout this fall, represents a significant shift for the company. For years, Apple prioritized on-device processing, promoting it as a superior method for ensuring security and privacy. However, individuals involved in the development of Apple’s server project, codenamed ACDC (Apple Chips in Data Centers), assert that components already integrated into its processors can safeguard user privacy. The company utilizes an approach known as Secure Enclave, which can isolate data from potential security breaches.
For the time being, Apple intends to operate its cloud features using its own data centers. However, it will eventually rely on external facilities, as it does with iCloud and other services. The Wall Street Journal previously reported on certain aspects of the server plan.
Luca Maestri, Apple’s chief financial officer, hinted at this approach during an earnings call last week. “We have our own data center capacity and then we use capacity from third parties,” he stated after being asked about the company’s AI infrastructure. “It’s a model that has worked well for us historically, and we plan to continue along the same lines going forward.”
On-device AI features will remain a crucial component of Apple’s AI strategy. However, some of these capabilities will necessitate the company’s most recent chips, such as the A18 introduced in last year’s iPhone and the M4 chip that debuted in the iPad Pro earlier this week. These processors feature significant upgrades to the neural engine, the chip component responsible for AI tasks.
Apple is rapidly upgrading its product line with more powerful chips. Notably, it is introducing a next-generation processor, the M4, across its entire range of Mac computers. The Mac mini, iMac, and MacBook Pro will receive the M4 later this year, while the MacBook Air, Mac Studio, and Mac Pro are expected to adopt the chip next year, as reported by Bloomberg News in April.
Collectively, these plans lay the groundwork for Apple to seamlessly integrate AI into a wide range of its products. The company will focus on features that simplify users’ daily lives, such as providing suggestions and personalized experiences. Apple has no immediate plans to launch its own ChatGPT-style service, but it has been exploring the possibility of offering such an option through a partnership.
Just last week, Apple emphasized that its ability to execute AI on its devices would set it apart from competitors. “We believe in the transformative power and promise of AI, and we believe we have advantages that will differentiate us in this new era, including Apple’s unique combination of seamless hardware, software, and services integration,” said Chief Executive Officer Tim Cook during the earnings call. Without delving into specifics, Cook highlighted that Apple’s in-house semiconductors would provide an edge in this emerging field. He further emphasized that the company’s unwavering focus on privacy “underpins everything we create.”
According to sources, the company has invested hundreds of millions of dollars in the cloud-based initiative over the past three years. However, there are still gaps in its offerings. For users seeking a chatbot, Apple has engaged in discussions with Alphabet Inc.’s Google and OpenAI about integrating one into the iPhone and iPad. Recent discussions with OpenAI have intensified, suggesting that a partnership is likely. People familiar with the discussions have also indicated that Apple could offer a range of options from external companies.
