Apple Explores AI Chip Acquisitions Amid Struggles With In-House Server Chips

According to The Information, Apple is exploring acquisitions of AI chip startups in recent months as its in-house server chips struggle with demanding AI models. The company's M2 Ultra processors have faced performance limitations, forcing Apple to rely on Nvidia GPUs hosted in Google Cloud for more demanding workloads, including during development of its revamped Siri to run Google's Gemini models.

The report noted that Apple had discussions with bankers about potential chip acquisitions and has approached semiconductor startups to gauge interest in a sale. Earlier this year, Apple acquired Israeli startup Q.ai for $2 billion, marking its second-largest deal and signaling greater appetite for larger transactions as AI competition intensifies.