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Dec. 11, 2024, 8:32 p.m.
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Apple Developing AI Chips: Partnership with Broadcom and TSMC Explained

Brief news summary

Apple (AAPL) is reportedly working on its own artificial intelligence (AI) chips to reduce dependence on Nvidia (NVDA). Partnering with Broadcom (AVGO), Apple is developing a chip called Baltra, with mass production slated for 2026, according to reports. This chip will employ advanced manufacturing techniques from Taiwan Semiconductor Manufacturing Company (TSM), which also supplies Nvidia and Apple. Following this news, Broadcom's shares rose over 6%, Apple's increased by 0.2%, and TSMC's climbed 1.3%. In other developments, Apple updated its AI offering for the iPhone 16 through iOS 18.2, incorporating OpenAI's ChatGPT. This enhancement allows Siri, Apple's digital assistant, to suggest and provide ChatGPT responses directly, without app-switching. Users can enable or disable ChatGPT integration, and OpenAI will not store user inputs without a ChatGPT account.

Apple (AAPL) is reportedly developing its own artificial intelligence (AI) chips, aiming to reduce its dependence on AI chip leader Nvidia (NVDA). According to a Wednesday report by Reuters, based on information from The Information, Apple is teaming up with Broadcom (AVGO) to create a chip known as Baltra. Mass production is anticipated to start in 2026. The chip is set to be manufactured using an advanced process from Taiwan Semiconductor Manufacturing Company (TSM), which also supplies Nvidia and Apple. Following the news, Broadcom's shares surged over 6% in Wednesday afternoon trading, while Apple saw a 0. 2% increase, and TSMC's shares rose by 1. 3%. Hey Siri, Use ChatGPT Additionally, Apple Intelligence, Apple's AI platform for the iPhone 16 and other devices, received updates on Wednesday with iOS 18. 2, including integration with OpenAI's generative AI chatbot, ChatGPT. Apple announced that Siri, the digital assistant, can now suggest using ChatGPT for certain queries and provide answers directly, without needing to switch apps.

Users can enable or disable this feature, and OpenAI will not record inputs without a ChatGPT account, according to Apple.


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