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Engadget
Apple is reportedly shopping for AI chip companies
Apple is reportedly exploring potential acquisitions in the AI chip sector as it seeks to enhance its server capabilities and address performance issues with its M2 Ultra chips. This move is part of a broader strategy to bolster its AI processing power, which has faced competition from NVIDIA chips used in Google Cloud for more demanding tasks. The company had previously aimed for a next-gen server chip but has encountered delays. With significant cash reserves, Apple is positioned to make substantial investments in this area.
MonitorConfidence: MediumShort term horizonInfrastructure risk: High
Published 15 Jul 2026, 18:25 UTC2 min read
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Summary
TL;DR
- Apple is in talks to acquire AI chip companies.
- Performance issues arise with Apple's M2 Ultra chips.
- Apple's AI tasks are currently reliant on NVIDIA chips.
- Upcoming server chip, codenamed 'Baltra', faces timeline delays.
- Apple holds $45.6 billion in cash for potential acquisitions.
Interesting facts
- Apple spent almost $2 billion to acquire AI startup Q.ai this year.
- The acquisition of PA Semi in 2008 marked Apple's entry into chip manufacturing.
- There is potential for high acquisition premiums in the AI chip sector.