Apple is quietly shopping for AI chip companies. According to a new report from The Information, the company has been approaching chip startups and consulting with bankers about potential acquisitions — a notable shift for a firm long known for its reluctance to make big hardware buys. The move comes as Apple grapples with limitations in its current AI infrastructure. Its Private Cloud Compute servers, which power parts of Apple Intelligence, currently rely on internally designed M2 Ultra chips. These have proven insufficient for handling larger, more demanding AI models. The Siri Overhaul Problem One concrete example stands out: Apple has been working on a major Siri overhaul powered in part by Google’s Gemini models through a partnership. When engineers tried running these advanced models on Apple’s own servers, the M-series hardware fell short. As a result, more complex Siri tasks are now routing through Nvidia GPUs hosted in Google’s cloud infrastructure. This dependency clashes with Apple’s long-standing preference for controlling its own silicon and protecting user privacy through on-device and Private Cloud Compute processing. Baltra Delayed Internally, Apple has been developing its first dedicated AI server chip, codenamed Baltra. The company had originally targeted a 2026 launch, but the timeline has slipped. Baltra is designed as a purpose-built server ASIC (with Broadcom contributing key networking and interconnect technology) to reduce reliance on third-party GPUs for cloud AI workloads. The reported pursuit of acquisitions suggests Apple wants to accelerate progress on its next-generation server silicon — either by bringing in specialized talent and IP or by acquiring teams that have already solved similar challenges. A Rare Shift in M&A Approach Apple has historically avoided large acquisitions, preferring to build technology in-house. Its most recent notable deal was the January 2026 acquisition of Israeli audio AI startup Q.ai (reportedly valued around $2 billion). With roughly $45.6 billion in cash and cash equivalents as of late March 2026, Apple certainly has the financial firepower if it chooses to move. This new interest in chip startups marks a pragmatic acknowledgment that the AI hardware race — particularly in data center-scale inference and training — moves extremely fast. While Apple excels at designing efficient mobile and laptop chips, scaling specialized AI accelerators for servers is a different challenge that hyperscalers like Google, Amazon, and Meta have been tackling for years. Broader Context This development comes just days after Apple announced a major multi-year expansion of its partnership with Broadcom, worth more than $30 billion. The deal includes custom silicon components and supports U.S. manufacturing expansion in Colorado. It underscores Apple’s broader push to strengthen its custom silicon capabilities while also highlighting how much it still relies on external partners for certain advanced technologies. What It Means If Apple follows through on acquisitions, it could help close the gap in its cloud AI infrastructure faster than organic development alone would allow. Success here would support more ambitious on-device and private-cloud AI features without heavy dependence on external clouds and GPUs. It would also represent a meaningful evolution in Apple’s strategy: from a company that largely designs its own chips from scratch to one willing to acquire specialized expertise to stay competitive in the AI era. The coming months will reveal whether these discussions lead to actual deals — and whether they can meaningfully accelerate Apple’s ability to run sophisticated AI models on its own terms. MacDailyNews Take: The mad scramble to catch up continues. Hopefully, new Apple CEO John Ternus can quickly kick things back into high gear after far too many years of coasting along in neutral. Support MacDailyNews at no extra cost to you by using this link to shop at Amazon. The post Apple reportedly pursuing AI chip company acquisitions appeared first on MacDailyNews. You're currently a free subscriber to MacDailyNews. For the full experience, upgrade your subscription.
|
