Apple chasing AI chip company deals, The Information reports

Apple is looking to buy chip companies to bolster its efforts to make server processors for ‌running AI, The Information reported on Wednesday, citing people familiar ‌with the matter.

Here are some details:

• The iPhone maker has approached chip startups ​to gauge their interest in a buyout and has spoken with bankers about possible deals, the report said.

• Apple’s interest comes as it faces challenges with the performance of its in-house AI servers, which currently ‌run on internally designed ⁠M2 Ultra chips, according to The Information.

• It had originally planned to ship a future version of ⁠its AI server chip, known internally as “Baltra”, this year, but the project has been pushed back, people familiar with the matter told The ​Information.

• Apple ​did not immediately respond to a ​request for comment. Reuters could ‌not independently verify the report.

• Earlier this year, Apple tried running Google’s Gemini models on its internal servers as part of a Siri overhaul, but the Mac-based chips could not handle the large model, forcing the company to run parts of the revamped assistant ‌on Nvidia chips in Google’s cloud ​infrastructure, the report said.

• Apple has historically ​avoided large acquisitions, last ​making a deal in January for Q.ai, an Israeli ‌company working on AI technology ​for audio.

• The ​company had $45.57 billion in cash and cash equivalents as of March 28, the end of its second quarter.

• Last week, Apple ​said it plans ‌to spend over $30 billion under a multi-year chip supply deal ​with Broadcom, bolstering its domestic sourcing.