Apple could be considering acquisitions of semiconductor startups as it steps up efforts to strengthen its artificial intelligence capabilities. The tech giant wants to boost the development of server processors that power large AI models, according to a report by The Information.
The move highlights Apple's aim to narrow the AI gap with competitors that have invested heavily in AI infrastructure over the past two years.
According to The Information, “The company has been speaking with investment bankers and chip startups about possible acquisitions. Apple has been exploring potential acquisitions of semiconductor startups to boost its efforts to build server chips for running AI.”
Now the company is pursuing acquisitions to gain access to specialized chip technology and experienced semiconductor engineers. Apple has already developed chips for iPhone, iPad, and Mac through their custom silicon program. But developing processors for AI servers presents distinct challenges, especially for hardware that can both train and run sophisticated generative AI models.
Apple's new strategy aims to boost its artificial intelligence structure. However, as the tech giant was initially involved in developing on-device AI functionality, cloud-based AI services need powerful server processors for their complex operations.
Top players in the industry, including Nvidia, Google, Microsoft, and Meta, spent billions of dollars on building AI data centers and specialized chips. It seems that Apple is ready to quicken its pace as well.
Instead of designing everything from scratch, Apple might consider acquiring some businesses to reduce the development time. By acquiring companies in the promising semiconductor field, Apple could gain pre-built technology, intellectual property, and engineering talent that would otherwise take years to develop.
The report sparked optimism among investors, with Apple shares touching a record high following the news. Analysts believe strategic acquisitions could strengthen Apple's AI ecosystem and help the company compete more effectively in AI infrastructure.