Apple's Project ACDC: Exploring an AWS Competitor with Apple Silicon

Report: Apple looked into building its own AWS competitor - 9to5Mac

The Information is out with an interesting report about how Apple has considered spinning up its own developer cloud services, in a move that would put it against some of its competitors' biggest revenue streams. Here are the details. As reported by Aaron Tilley, Apple's Project ACDC (which stands for Apple chips in data centers) would not be that different from Amazon's AWS, Microsoft's Azure, or Google's Cloud Platform: "The idea discussed was for Apple to rent out servers running on Apple's own chips, said three people involved in the effort. That reflects Apple's successful development of its own chips, which have given its phones and laptops a big edge over rival devices -- and which are also now being used in Apple's data centers for some artificial intelligence services." According to the report, Apple has considered this in the "past few years", and would offer the service as a cheaper and more efficient in-house alternative to other cloud competitors. One big reason Apple was even entertaining the idea is performance. Executives believed Apple silicon could offer better AI inference performance at a lower cost, especially as demand ramps up for efficient, high-volume AI workloads: Apple's chips are efficient at running many types of inference, which means using pre-trained AI models to interpret new information, such as computer vision found in the Vision Pro. Apple started using its own chips inside its data centers with the launch of Private Cloud Compute (the system that powers server-side requests for Apple Intelligence), then expanded it to the Siri team: "Siri was the first team to try out servers powered by Mac chips for text-to-speech capabilities. The servers provided a performance improvement in accuracy and cost reduction compared to traditional servers with Intel chips, said people involved in the project." Soon, services like Photos and Apple Music also got access, to improve performance in areas like search. Apple even explored offering this same cloud setup to outside developers, without spinning up an enterprise sales force. Instead, the existing Developer Relations team would manage access, creating a more Apple-like developer experience than what AWS or Azure offer today. The Information says that Project ACDC's status is unclear, since Michael Abbott, the Apple executive who championed the idea, left the company in 2023. The report states that while discussions continued into the first half of 2024, it's currently not known whether the initiative is still alive. Of course, all of this also ties into Apple's broader services ambitions. As App Store fees face regulatory pressure and its $20 billion Google search deal sits in the DOJ's crosshairs, Apple is looking for new ways to grow services revenue. For Apple, a developer-focused cloud built on Apple silicon would be a natural extension of that strategy. For developers, this could mean not having to rely entirely on costly GPU instances from third-party cloud providers. Regardless, today's report shows just how seriously Apple is thinking about turning its silicon advantage into new sources of revenue. This probably won't be the last time we hear about this. Are you a developer? Which cloud provider do you use? Would something like Project ACDC be appealing to you? Let is know in the comments.

Apple reportedly considered launching its own public cloud

A report by The Information notes the initiative was said to have been known as Project ACDC (Apple Chips in Data Centers), and would have given developers access to Apple's proprietary M-series chips. Apple reportedly targeted offering a cheaper and more efficient alternative to traditional cloud platforms that use Intel or GPU-heavy servers by replacing them with its own M-series chips, which are known for their computing efficiency and strong AI inferencing capabilities. Apple already uses its M-series chips applications beyond its Mac and iPad range - it started testing its chips in data centers with the launch of Private Cloud Compute (PCC), which handles complex AI queries when on-device processing power isn't sufficient. Other Apple services, like Siri, Photos and Music, also got access to M-series chips to improve performance across things like search. It could even be possible that these efforts could underpin the much-needed upgraded version of Siri. With potential plans to launch the service to developers via its Developer Relations team, rather than creating a new sales team, Project ACDC would largely be an Apple-focused initiative, enabling developers to design iOS and macOS apps directly on Apple's chips, reducing dependency on expensive GPUs. Michael Abbott, the exec previously behind Project ACDC, left the company in 2023, but discussions reportedly continued into at least early 2024. The project's future remains uncertain. However, Apple has previously indicated a desire to grow services revenue, and Project ACDC could certainly align with that. It could also help Apple cut costs on its own development, with the company reportedly spending $7 billion annually on third-party cloud services (via Apple Insider).

AWS showdown: Apple once considered providing cloud services to developers | AppleInsider

iCloud is Apple's main cloud service, but it apparently considered providing developers with more. Apple reportedly was considering providing cloud services to app developers, as executives considered the creation of a rival offering to services sold by Microsoft, Google, and Amazon. Developers often rely on cloud servers for various tasks, ranging from data storage to off-device processing. While the major names in the field include the lies of Microsoft, Amazon, and Google, Apple could've been another name on the list. According to sources of The Information Apple has internally considered providing server-rentals to developers of iPhone and Mac apps. The deliberations, which have happened over the last few years, have not yet resulted in such a service existing, but there's a chance one could eventually turn up. Executives had envisioned the use of its own chips in servers, used to perform number crunching for clients, including for AI purposes. However, the proponents of the idea thought that Apple's chips are so efficient that developers could end up saving money versus current-gen cloud services. The internal talks were largely headed up by cloud executive Michael Abbott, who was reportedly the biggest driver of discussions. However, after departing Apple in 2023, talks didn't die down completely. Discussions on the topic apparently took place in the first half of 2024, but it is unknown if any took place after that time. It is also not known if the talks have died completely, or whether they continue at a smaller or more secretive scale.

Apple Executives Considered Offering Cloud-Based Servers To iPhone And Mac App Developers, Rivaling The Likes Of AWS, As It Is A Potential Gold Mine For The Company To Earn Billions

Companies like Google, Microsoft, and Amazon offer cloud-based services to a truckload of customers, including Apple, but the latter's executives have always wanted to branch out and offer something similar to iPhone and Mac app developers, reducing dependency on other technology giants while also opening up another revenue stream. This business would function similarly to Amazon Web Services (AWS), but so far, there is no concrete timeline on when something like this would materialize. The talks were held internally and were headed by Michael Abbott, according to sources close to The Information. Unfortunately, Abbott left the company in 2023, meaning that the discussions might not have been completely disseminated, but there is a high chance that the momentum was severely cut down. However, these talks carried on in the first half of 2024, but there is no update on the progress. One of the biggest differences of using Apple's services is that the Cupertino firm will likely use its in-house silicon. The company was previously said to be developing custom solutions that would leverage TSMC's second-generation 3nm process, with mass production kicking off in 2025. The M5 will reportedly be introduced later this year, and with the Taiwanese semiconductor giant's SoIC packaging, it could be an excellent fit for servers while delivering incredible performance and efficiency. Not only will these SoCs be cheaper for Apple to deploy its hardware for developers, but it can pocket billions in savings. For instance, AppleInsider reports that the California-based titan spends around $7 billion annually using services from Amazon and Google, even if it is primarily for training its AI models. As of 2024, Google Cloud made up 12 percent of Alphabet's total revenue, bringing in an impressive $43.2 billion. Looking at these numbers, it makes complete sense for Apple to reduce reliance on these companies and carve out its own path, but there is no telling when we will witness the first servers. For now, we will keep our fingers crossed and await more updates.