Apple is teaming up with semiconductor company Broadcom to develop its first server chip specifically designed for handling AI applications. Apple is renowned for creating its own chips, known as Apple Silicon and mainly produced by TSMC, for its devices. However, these chips weren’t originally intended for powering AI processing.

Just recently, Apple introduced a number of long-awaited Apple Intelligence features to users with newer iPhones and Macs, including its integration with ChatGPT. While Apple intends to conduct a significant portion of its AI operations directly on devices, certain tasks such as Siri and Maps require cloud-based processing with extensive computing requirements. Apple also has plans to introduce more generative AI features in the upcoming years.

This is where Apple’s new server chips, internally known as Baltra, come into the picture. According to a source cited by The Information, Apple and Broadcom are concentrating on the chip’s networking technology, crucial for connecting a device to a network for AI processing. The company’s goal is to finalize the chip design within a year.