Apple planned to build a server chip to serve its own AI and may have sacrificed the company’s fastest chip ever to achieve this; The report suggests a strategic partnership with Broadcom worth $850 billion
- Apple is developing a “Baltra” server chip for AI, targeting production in 2026
- Israeli silicon team leads project; Mac chip canceled for focus
- Broadcom collaboration and TSMC’s N3P technology to improve development
Apple is reportedly developing its first server chip specifically tailored for artificial intelligence.
A paywall report by Wayne Ma and Qianer Liu in The information claims that the project, codenamed ‘Baltra’, aims to address the growing computational demands of AI-driven functions and is expected to go into mass production in 2026.
Apple’s silicon design team in Israel, which was responsible for designing the processors that replaced Intel chips in Macs in 2020, is now leading the development of the AI processor, according to sources. To support these efforts, Apple has reportedly halted development of a powerful Mac chip made up of four smaller chips stitched together.
Central to Apple’s efforts
The report notes that this decision, made over the summer, is intended to give engineers in Israel time to focus on Baltra, signaling Apple’s shift in priorities toward AI hardware.
Apple is teaming up with semiconductor giant Broadcom on this project, which will leverage the company’s advanced networking technologies needed for AI processing. While Apple typically designs its chips in-house, Broadcom’s role is expected to focus on networking solutions, marking a new direction in their partnership.
To create the AI chip, The information says Apple plans to use TSMC’s advanced N3P process, an upgrade to the technology behind its latest processors, such as the M4. The move underlines Apple’s focus on improving the performance and efficiency of its chip designs.
The Baltra chip is expected to boost Apple’s efforts to integrate AI more deeply into its ecosystem. By leveraging Broadcom’s networking expertise and TSMC’s advanced manufacturing techniques, Apple appears determined to overtake the AI competition and establish a stronger presence in the industry.
In November 2024, we reported that Apple approached its long-time manufacturing partner Foxconn to build AI servers in Taiwan. These servers, which use Apple’s M-series chips, are intended to support Apple Intelligence features on iPhones, iPads and MacBooks.