On May 7^th Patently Apple posted a report titled "Apple is reportedly working with TSMC on a new AI Chip for Data Centers." In the report we noted that Bloomberg's Mark Gurman didn't "believe" Apple would make its own AI Server Chips. Two days later and Gurman now reports that "Apple Inc. will deliver some of its upcoming artificial intelligence features this year via data centers equipped with its own in-house processors, part of a sweeping effort to infuse its devices with AI capabilities."

The company is placing high-end chips — similar to ones it designed for the Mac — in cloud-computing servers designed to process the most advanced AI tasks coming to Apple devices, according to people familiar with the matter. Simpler AI-related features will be processed directly on iPhones, iPads and Macs, said the people, who asked not to be identified because the plan is still under wraps.

The move is part of Apple’s much-anticipated push into generative artificial intelligence — the technology behind ChatGPT and other popular tools. The company is playing catch-up with Big Tech rivals in the area but is poised to lay out an ambitious AI strategy at its Worldwide Developers Conference on June 10.

Apple’s plan to use its own chips and process AI tasks in the cloud was hatched about three years ago, but the company accelerated the timeline after the AI craze — fueled by OpenAI’s ChatGPT and Google’s Gemini — forced it to move more quickly.

The move, coming as part of Apple’s iOS 18 rollout in the fall, represents a shift for the company. For years, Apple prioritized on-device processing, touting it as a better way to ensure security and privacy. But people involved in the creation of the Apple server project — code-named ACDC, or Apple Chips in Data Centers — say that components already inside of its processors can safeguard user privacy. The company uses an approach called Secure Enclave that can isolate data from a security breach. For more on this, read the full BNN Bloomberg report.