According to reports, Apple is collaborating with Broadcom to create an AI server chip called Baltra, with plans for mass production by 2026. This initiative aims to enhance Apple’s AI capabilities while reducing its dependency on Nvidia, leveraging TSMC’s cutting-edge chip manufacturing technology.
Apple is reportedly collaborating with Broadcom to develop its first server chip tailored for artificial intelligence (AI) processing. According to a report from The Information, the chip, known internally as Baltra, is anticipated to enter full-scale production by 2026.
The initiative positions Apple alongside other tech giants, such as Google, which have created custom chips to power AI-driven technologies. By taking this step, Apple aims to enhance its AI capabilities while reducing dependence on Nvidia’s expensive and often limited processors.
To produce the chip, Apple plans to leverage Taiwan Semiconductor Manufacturing Co.’s (TSMC) advanced N3P fabrication process. This partnership signifies a strategic shift as Apple continues to focus on improving AI functionality across its devices and services.
Following the news, Broadcom’s shares rose by five percent, reflecting its success in the generative AI boom. In 2024 alone, the company’s stock has surged by 54 percent, building on its near-doubling the year before.
This collaboration builds on an existing relationship between Apple and Broadcom, including a multi-billion-dollar agreement last year to develop 5G radio frequency components. At its Worldwide Developers Conference earlier this year, Apple also revealed plans to use its server chips to support AI-driven features on its devices.
Despite Apple’s success in designing chips like the M-series, which replaced Intel processors in Macs, fully moving away from Nvidia’s dominance in the AI chip market remains a challenge for companies like Apple and Microsoft. A notable exception is Google, which also collaborates with Broadcom on custom AI chips.
In this competitive landscape, Broadcom’s main rival, Marvell, estimates that the custom chip market could grow to $45 billion by 2028, with both companies likely to claim significant market shares.
