Apple teams with Broadcom for new AI chip, The Information says
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The news: Apple is collaborating with Broadcom to develop its first AI-specific server chip, code-named Baltra, and expects it to be ready for mass production by 2026, The Information reported citing three unnamed people with direct knowledge of the project.
The chip will utilise TSMC's advanced N3P process and is part of Apple’s ongoing strategy to bolster its AI capabilities while reducing reliance on Nvidia’s expensive processors, the report says.
The numbers: Broadcom has become one of the biggest beneficiaries of the generative AI boom, with shares gaining 54% in 2024. On Wednesday (Thursday AEDT), the company's shares rose over 6% after the report.
Apple shares gained 1% before paring back some gains at midday
The context: The chip would mark a significant milestone for Apple’s silicon team, which the paper noted has transitioned from designing iPhone chips to creating Mac processors that set new standards for performance and energy efficiency.
Broadcom’s main competitor is Delaware-based Marvell. Earlier this month, Marvell COO Chris Koopmans said the total market for custom chips could grow to about USD45 billion by 2028, growth which would be captured by the two companies.
The sources: The Information , Reuters, Bloomberg
