Apple is developing AI chips for data centers

Apple Inc (NASDAQ:AAPL) is working on an in-house chip to run artificial intelligence programs in data centers, according to the Wall Street Journal, as the tech behemoth seeks a competitive advantage in the rapidly expanding market.

According to the WSJ, the project is internally code-named ACDC (Apple Chips in Data Centers).

Over the last decade, Apple began creating its own semiconductors for its flagship iPhones and other gadgets in an effort to reduce reliance on other chip developers such as Intel (NASDAQ:INTC).

The company was able to fine-tune its gadgets by using in-house semiconductors, resulting in better performance and battery life.

The Cupertino-based tech behemoth has created chips for both its portable and desktop products.

The WSJ article comes amid increased concern over how the iPhone maker intends to incorporate AI into its product lineup, given that Apple has trailed behind its US tech peers in releasing AI goods.

Earlier this year, Apple apparently abandoned plans for an electric vehicle in favor of focusing on AI development.