According to reports, Apple Inc. (AAPL.US) is collaborating with Broadcom Inc. (AVGO.US) to develop the company's first internal Server chip specifically designed for AI. Sources indicate that this internally named Baltra chip may be ready for mass production before 2026. The media added that the new AI Chip can be used for inference, capable of processing new data and then passing it to large language models to produce outputs, which is a task different from training models. Insiders stated that the chip will be manufactured by Taiwan Semiconductor (TSM.US), possibly using its 3-nanometer process.

Julian Lin, head of the Best Of Breed Growth Stocks investment group, stated that this potential partnership may be more beneficial for Broadcom than for Apple, as "Apple has traditionally had many technologies that are in-house." Lin added: "We may see the next predictable phase of the AI hype cycle: high profits will always attract competition."

According to previous reports, plans to bring Apple's chips into its own Servers accelerated after OpenAI's ChatGPT chatbot swept the globe in December 2022.

Apple CEO Tim Cook previously stated that Apple has certain advantages in the field of AI that some competitors do not have. Cook stated during the earnings reports conference call in May: "We believe in the transformative power and potential of AI, and we believe that the advantages we possess will make us stand out in this new era, including Apple's unique seamless integration of Hardware, Software, and services, groundbreaking Apple Chips, industry-leading Neural Engines, and our strong focus on privacy, all of which are the foundation of everything we create."

Last week, Apple executive Benoit Dupin unusually acknowledged Amazon's custom AI Chips and stated that Apple is evaluating Amazon's latest AI Chips used for pre-training models. Apple has also used some of its own chips to train the AI models of Apple Smart Company.

On Wednesday, Apple continued to roll out AI features. The tech giant released the latest versions of iOS, macOS, and iPadOS, all of which include some AI-related features, including the integration of ChatGPT into Siri.