Apple is reportedly planning to buy semiconductor startups as it tries to improve its AI technology and catch up with rivals in the AI race. According to The Information, the company has been speaking with investment bankers and chip startups about possible acquisitions. The report claims that Apple has been exploring potential acquisitions of semiconductor startups to “boost its efforts to build server chips for running AI.”
In recent months, Apple has reportedly reached out to startup companies to understand whether they would be interested in selling their businesses. The company is said to be considering these deals as it is facing problems with the performance of its current AI servers.
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Currently, Apple’s AI servers use its in-house M2 Ultra systems. However, these systems are reportedly not powerful enough for more advanced AI workloads. According to the report, Apple has also delayed its next-generation AI server chip, internally known as Baltra. The chip was expected to launch in 2026.
While Apple is developing its own AI hardware, it is reportedly relying on other companies for more demanding AI tasks. The report says some of the advanced processing behind the new Siri, which uses a Gemini-based model, runs on Nvidia GPUs through Google Cloud.
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If Apple goes ahead with a major acquisition, it would be different from its usual approach. The company has traditionally bought smaller startups to add new technology or talent. However, Apple has completed large deals in the past. It bought Beats for $3 billion in 2014 and acquired most of Intel’s smartphone modem business for $1 billion in 2019.
More recently, Apple reportedly acquired Israeli AI startup Q.ai for nearly $2 billion. Reports also claim that Apple had discussions with PrismML, whose technology can make large AI models small enough to run directly on iPhones.
Do note that Apple has not officially announced any acquisition plans.
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