Apple Inc (NASDAQ:AAPL, ETR:APC) is reportedly developing chips to power artificial intelligence software in data centres in a move to rival NVIDIA Corp (NASDAQ:NVDA, ETR:NVD).
Codenamed Project ACDC, the technology giant is said to be designing the chips to run AI models, according to the Wall Street Journal.
NVIDIA’s chip development focuses more on training AI models, with the developer having built a dominant position as the use of the technology has boomed in recent years.
Apple is already a major chip developer, but the technology is incorporated into semiconductors used in iPhones and iPads, rather than server infrastructure.
The plan to roll out chips for infrastructure has reportedly been in the works for several years, though it remains unclear when such a product will be unveiled.
Taiwan Semiconductor Manufacturing Co has partnered with Apple on such plans, but there remains uncertainty surrounding whether a successful chip has been built.
Apple’s move into the sector would come after chief executive Tim Cook signalled last week that various AI features would be rolled out to products over the coming months.
“We continue to feel very bullish about our opportunity in generative AI and we're making significant investments,” he said after Apple’s expectation-beating results.
Apple is due to host an event on Tuesday where the latest iPad is expected to be showcased, alongside a new chip to power AI on the devices.