Apple said to begin production of M2 Ultra-powered AI servers
Haitong analyst Jeff Pu is reporting that Apple has begun production of its own AI servers powered by its M2 Ultra chip.
Hartley Charlton for MacRumors:
Pu provided the analysis based on supply chain checks in a new note to investors seen by MacRumors. Foxconn is said to currently be assembling Apple AI servers that contain the M2 Ultra, with plans to assemble AI servers powered by the M4 chip in late 2025. Last month, a reputable source on Weibo said that Apple was working on processors for its own AI servers made with TSMC’s 3nm process, targeting mass production by the second half of 2025, which may line up with this report about M4-powered AI servers.
Apple’s decision to build its own AI server is reflective of the company’s ongoing strategy to vertically integrate its supply chain. Apple will likely use its own chips to enhance the performance of its data centers and future AI tools that rely on the cloud.
While Apple is rumored to be prioritizing on-device processing for many of its upcoming AI tools, it is inevitable that some operations will have to occur in the cloud. By the time M4-based servers could be operational in data centers, Apple’s new AI strategy should be well underway.
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MacDailyNews Take: Operation Catch TF Up is underway!
As we explained in early April:
Apple was caught flat-footed, due to a lack of vision on the part of leadership. They were, uh, focused elsewhere. Apple’s traditional data center network is not fit for generative AI. It will take years and billions of dollars to catch up just to where GenAI leaders (OpenAI, Microsoft, Alphabet, etc.) are today.
So, the only solution is to partner with a [Google, OpenAI, Baidu, etc.] for the real GenAI stuff while pretending (marketing) really hard that some on-device AI Apple has whipped up in a few months is “insanely great Apple innovation” that’s at the heart of Apple’s 2024’s AI announcements when it’s really just an adjunct… Watch Apple make a big show of its on-device AI at WWDC and run many ads touting it from June onwards.
Apple hopes to buy time for the data center buildouts and investments that will be required for them to someday own their own AI technology and not have to license it from the likes of [Google, OpenAI, Baidu, etc.].
This is what happens after a decade plus with a caretaker CEO at the helm after he hits the last page of his iteration playbook, yet attempts to stay in the game for too long.
See also:
• Work on Apple Vision Pro began under Steve Jobs – August 23, 2023
• Contrary to popular belief, Steve Jobs knew about Apple Watch – February 13, 2023
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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
The post Apple said to begin production of M2 Ultra-powered AI servers appeared first on MacDailyNews.
