Apple Pursues AI Chip Startups Following Server Chip Delay

Apple Inc. is exploring the acquisition of artificial intelligence chip startups to remedy shortcomings in its cloud AI infrastructure. The company is currently consulting with bankers to identify targets, representing a departure from its traditional strategy of prioritizing in-house development.

This pivot follows the delay of Baltra, the company's first dedicated AI server chip originally scheduled for a 2026 release. Apple's current infrastructure relies on M2 Ultra chips, which have proven insufficient for high-demand AI models. Consequently, the company has been forced to route complex Siri tasks through Nvidia GPUs hosted within Google's cloud environment.

To bolster its custom silicon capabilities and reduce reliance on third-party hardware, Apple recently announced a multi-year partnership expansion with Broadcom Inc. valued at more than $30 billion. These strategic hardware investments are intended to mitigate market headwinds in China and capitalize on growth opportunities in India.