Apple Partners with Broadcom to Develop First AI Server Chips, Launch Set for 2026

Apple is forming a partnership with semiconductor developer Broadcom to create its inaugural server chips designed specifically for artificial intelligence (AI).

This announcement follows Apple's recent updates to its iOS, macOS, and other devices, which feature advanced capabilities in what they call "Apple Intelligence." While both Apple and Broadcom have not yet commented on this collaboration, reports indicate that both companies are eager to enhance their technological footprint.

According to a report by The Information, Apple is working closely with Broadcom on the chip's networking features. The chip, internally referred to as Baltra, is anticipated to go into production in 2026.

Industry experts believe that this partnership aims to align Apple's growing server requirements, particularly for its expanding Apple Intelligence services, more closely to its operational needs.

Mark Gurman from Bloomberg explained that while many AI functions can be processed on devices like the iPhone, iPad, or Mac, some tasks require cloud processing. This includes functionalities such as text summarization and writing assistance, which necessitate a dedicated server infrastructure.

Founded in 1991, Broadcom, based in San Jose, specializes in semiconductor and software technologies. Its products are prominent in areas such as data centers, networking, and wireless communications, supporting a variety of modern technological applications.

This new collaboration is a part of a broader relationship between Apple and Broadcom that kicked off in 2023. This earlier deal involved Broadcom supplying 5G radio frequency components for Apple's devices.

The new AI chip aims to meet the high computing demands associated with Apple’s innovative AI features, all while enhancing performance and energy efficiency. Apple's silicon design team based in Israel is set to lead the chip's development process.

Recently, Apple acknowledged that its present AI computing capabilities depend on collaborations with major cloud providers like Google Cloud and Amazon Web Services to support its search functionalities and the Apple Intelligence program.

In addition to Broadcom, the Taiwanese company Taiwan Semiconductor Manufacturing Company will be integral in the mass production of this new AI chip.

Following the announcement of the partnership with Broadcom, Apple’s stock saw a brief rise to $250 before settling around $247. Concurrently, Broadcom's stock initially increased by 7.5% to $184.73 but later dropped to $182.98 in after-hours trading.

Apple, Broadcom, AI