Secret project underway to develop advanced AI chips by Apple.

Apple’s secret project to build powerful AI chips for data center servers has been revealed by The Wall Street Journal ahead of the upcoming Apple AI announcements at WWDC 2024. Known as Project ACDC (Apple Chips in Data Center), this initiative has been ongoing for years with the help of TSMC. However, it remains unclear if or when Apple will unveil these chips.

While this project could potentially boost Apple’s AI capabilities, recent reports suggest that Project ACDC may have been canceled, similar to other ambitious projects such as the Apple car and in-house microLED production. According to Bloomberg’s Mark Gurman, Project ACDC did exist but was ultimately canceled due to factors like cost, lack of differentiation, and the on-device nature of Apple’s LLM technology.

Despite the speculation surrounding the fate of Project ACDC, Apple’s focus on AI remains strong as the company gears up to introduce new products and software with generative AI capabilities. This development comes at a crucial time as Apple looks to stay competitive in the ever-evolving AI landscape.