Apple is in the works to create its own chips for handling artificial intelligence (AI) tasks in data centers. This project, dubbed Project ACDC internally, aims to enhance Apple's server capabilities, particularly in AI inference. Tim Cook, Apple's CEO, has expressed a strong commitment to advancing AI technology.

The project, also known internally as Project ACDC (Apple Chips in Data Center), aims to capitalize on Apple's expertise in chip design for its server infrastructure.

Before Tuesday's opening bell, Apple's shares were up by 1%, but the company did not respond to Reuters' request for comment.

In recent years, Apple has become a significant player in chip design, thanks to the success of its semiconductors in iPhones, iPads, and Mac laptops.

According to the Wall Street Journal (WSJ), Apple's server chip is likely to focus on AI inference tasks rather than AI model training, an area where Nvidia currently dominates.

Facing pressure due to a slow rollout of AI services, Tim Cook hinted last week that Apple plans to introduce a host of features powered by AI in the near future.

"We continue to feel very optimistic about our prospects in generative AI, and we're investing heavily," Cook told Reuters.

Apple is set to host a virtual event on Tuesday, where it is expected to unveil new iPad models, some of which may include a new chip designed to accelerate AI tasks on the devices.

Project ACDC has been in development for several years, but it's unclear when the new chip will be revealed, if at all, according to the WSJ report.

Apple has been collaborating closely with Taiwan Semiconductor Manufacturing Co to design and initiate production of these chips. However, it remains uncertain whether the efforts of both companies have produced a definitive result, as per the report.

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