Apple’s first AI server chip to be engineered in Israel
Aiming for mass production by 2026, Apple pivots its R&D priorities toward artificial intelligence breakthroughs.
A team of Apple engineers in Israel is leading the ambitious development of Apple's first server AI chip, according to a report by The Information. This chip is expected to play a significant role in shaping the company's artificial intelligence (AI) strategy.
Sources familiar with the matter reveal that Apple recently began developing its first server chip designed specifically for AI applications, marking a major step in its efforts to strengthen its position in the AI sector. The project involves collaboration with chip giant Broadcom, which is assisting in designing the chip's networking technology—an essential element for AI performance. Apple plans to enter mass production of the chip by 2026 and has secured an agreement with Taiwan's TSMC to utilize one of its most advanced production processes.
The development is spearheaded by a team of chip engineers at Apple’s R&D center in Herzliya, Israel. According to The Information, this is the same team that successfully developed the Mac chips that replaced Intel processors in 2020. Until recently, the team was focused on creating a high-performance chip for the Mac. However, Apple shelved that project this summer to prioritize the AI chip's development.
This strategic pivot underscores Apple’s shifting priorities and its intensified focus on AI. The generative AI (GenAI) revolution initially left Apple lagging behind competitors like Google and Microsoft. Just yesterday, Apple took a step toward closing that gap by launching updated Mac and iPhone operating systems that feature image-generation capabilities (albeit not on par with the most advanced models) and integration with OpenAI’s ChatGPT.
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In parallel, Apple aims to establish robust hardware infrastructure to support its AI advancements, with the server AI chip as a cornerstone of this effort. The decision to entrust the Israeli team, which played a critical role in Apple's successful transition from Intel to in-house Mac chips, reflects the company's continued confidence in its Herzliya R&D center. This move not only highlights the importance of the Israeli team in Apple’s future but also underscores the strategic significance of the AI chip in the company’s broader plans for artificial intelligence innovation.
