Apple reportedly gearing up to mass-produce in-house AI server chips very soon

According to analyst Ming-Chi Kuo, after striking a deal with Google, Apple is gearing up to mass-produce in-house AI server chips very soon.

“Apple’s self-developed AI server chips are expected to enter mass production in 2H26, and its own data centers are expected to begin construction and operation in 2027, which may indicate that Apple anticipates significant growth in on-device AI demand starting in 2027,” he writes in an X post.

Yesterday CNBC reported that Apple is teaming up with Google to use Gemini models for an AI-powered Siri. The multiyear partnership will lean on Google’s Gemini and cloud technology for future Apple foundational models, according to a joint statement obtained by CNBC’s Jim Cramer.

Here’s the info from the statement: Apple and Google have entered into a multi-year collaboration under which the next generation of Apple Foundation Models will be based on Google’s Gemini models and cloud technology. These models will help power future Apple Intelligence features, including a more personalized Siri coming this year.

After careful evaluation, Apple determined that Google’s Al technology provides the most capable foundation for Apple Foundation Models and is excited about the innovative new experiences it will unlock for Apple users. Apple Intelligence will continue to run on Apple devices and Private Cloud Compute, while maintaining Apple’s industry-leading privacy standards.

In his X post, Kuo said the Apple-Google partnership is a short-term move driven by pressure. He says there are two short-term challenges in Apple developing its own AI that have forced the Google deal:

° This year’s WWDC AI demonstration cannot afford to fail again. 

° Usser expectations for AI service quality have risen with the development of cloud AI.”

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