AI News: Apple to Roll Out AI Features with Custom Chips

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Apple Inc. is poised to introduce advanced artificial intelligence features powered by its in-house servers. This strategic move is a major milestone in the unification of AI capabilities throughout Apple devices, which will be helped by the company’s custom processors.

According to knowledgeable sources, these servers are installed with high-end chips, such as those of Mac computers, to handle complex AI duties.

Apple’s In-House Servers to Power AI

The deployment of the high-end M2 Ultra and recently unveiled M4 processors in Apple’s data centers is to accommodate the AI features that are soon becoming a reality. Using in-house chips fits into Apple’s overall strategy of keeping control of its hardware and software ecosystems.

This approach ensures that Apple’s servers effectively and securely handle complex AI tasks like image generation, news article summarization, and crafting long-form email responses.

More basic AI tasks will be performed on Apple devices such as iPhones, iPads, and Macs. These activities include presenting users with summaries of missed notifications and incoming SMS messages. This spread of duties between the device and server is intended to optimize performance while retaining user privacy.

ACDC Project and Privacy Focus

Internally referred to as the ACDC (Apple Chips in Data Centers) project, the initiative has been in progress for several years with assistance from TSMC. Such a project emphasizes Apple’s dedication to user privacy.

While performing data on its servers, Apple ensures that user information is safe thanks to its Secure Enclave technology, which sets it apart from its competitors.

Apple’s CFO Luca Maestri emphasized this stance, focusing on the company’s policy of employing the in-house capacity of data centres and third-party services. This hybrid model has worked well for Apple in the past and will be the foundation of its infrastructure strategy going forward.

AI Strategy and Market Position

Next month, Apple’s AI strategy will be revealed at the Worldwide Developers Conference (WWDC). The new approach will introduce active AI functionalities, improving day-to-day user experiences. Reportedly, the company has talked with other industry players like Google, owned by Alphabet Inc. and OpenAI, to consider possible partnerships for generative AI services.

Apple’s introduction of AI features powered by in-house chips will put the company in the same league as other tech giants like Amazon, Google, Microsoft, and Meta, which have all invested in proprietary server processors. This tendency also indicates a change in dependence on traditional components from Intel and the like, demonstrating the industry’s movement toward custom silicon solutions.

Following the reports about Apple’s AI advancements, the company’s shares experienced a modest increase, reflecting investor optimism. Consequently, Apple stock (AAPL) was trading at $184.58, a 1.11% surge at press time

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