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       Apple working on AI chips for data centers, WSJ reports
        
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       (Reuters) - Apple is developing its own chip to run artificial
       intelligence software in data centers, the Wall Street Journal
       reported on Monday, citing people familiar with the matter.
        
       The project, internally codenamed as Project ACDC (Apple Chips in Data
       Center), aims to leverage Apple's chip design expertise for its server
       infrastructure, the report said.
        
       Apple, whose shares were 1% higher before the bell on Tuesday, did not
       respond to a Reuters request for comment.
        
       The company has emerged as a major chip designer in recent years,
       thanks to the success of its semiconductors that are used in the
       iPhone, iPads and Mac laptops.
        
       Apple's server chip will likely be focused on running AI models, also
       known as inference, rather than in training AI models, where Nvidia is
       dominant, the WSJ report said.
        
       Amid growing pressure due to a slow roll out of AI services, CEO Tim
       Cook had last week signaled that Apple plans to unveil a raft of
       features powered by the technology in the coming months.
        
       "We continue to feel very bullish about our opportunity in generative
       AI and we're making significant investments," Cook told Reuters last
       week.
        
       The company plans to hold a virtual event on Tuesday where it is
       expected to showcase new iPad models, some of which could come with a
       new chip aimed at speeding up AI tasks carried out on the devices.
        
       Project ACDC has been in the works for several years and it is
       uncertain when the new chip will be unveiled, if ever, the WSJ report
       said.
        
       Apple has been closely working with Taiwan Semiconductor Manufacturing
       Co to design and initiate production of such chips and that it remains
       uncertain whether both companies have yielded a definitive result, the
       report said.
        
       (Reporting by Angela Christy in Bengaluru; Editing by Varun H K and
       Arun Koyyur)
        
        
        
        
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