Apple plans mass production of in-house AI server chips in 2026 to reduce reliance on Google

Apple could unveil in-house AI server chips later this year to reduce reliance on partners

Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. In a nutshell: Apple is preparing to shift more of its artificial intelligence operations in-house, with plans to begin mass production of its first AI server chips in the second half of 2026. The company's long-standing silicon division, credited with advancing the performance and efficiency of the iPhone, iPad, and Mac, is now expanding its design expertise into server-class hardware. Analyst Ming-Chi Kuo's latest report points to a multistage rollout: Apple's self-developed AI server chips will begin production in late 2026, while the new Apple data centers equipped to run them are expected to begin construction and operation the following year. The timeline suggests Cupertino is preparing for a major increase in on-device AI activity by 2027, supported by its own large-scale cloud infrastructure to handle the heavier computation. Although Apple recently confirmed a partnership with Google to integrate Gemini models into new Siri features, the company's investment in proprietary AI hardware indicates it is building a dual strategy - leveraging external models while maintaining fuller control over long-term performance and privacy through internal systems. Apple's hardware record shows a clear trajectory toward deeper silicon integration. After several generations of Apple Silicon chips transforming its consumer devices, the company successfully shipped its own in-house cellular modems, the C1 and C1X, and a wireless connectivity chip dubbed the N1. These projects proved Apple's ability to replace key third-party components with its own designs - an approach now extending to backend AI infrastructure. Within that broader roadmap, Apple's AI server chip effort has been reported to be a distinct project, rather than a simple extension of the Mac-focused M-series line used today in its data centers. The chip is said to be internally codenamed Baltra and developed with Broadcom, separate from the M-series processors that currently power Apple Intelligence servers and Private Cloud Compute. Those M-series chips handle AI tasks as part of more general-purpose compute platforms, while Baltra is framed as server silicon built first and foremost around AI. The current production schedule positions Apple to begin small-scale deployment within existing data centers before new facilities come online, creating a bridge between its present M-series-based cloud infrastructure and the next generation of AI-focused servers. If Apple's rollout proceeds as described, the company could gain tighter control over AI data processing, reduce dependence on external compute providers, and better align its hardware ecosystem with its privacy and optimization standards. For a company often criticized for its deliberate pace in AI deployment, this move suggests a long-term architectural bet: that its future AI experiences - from Siri to system-level intelligence - will increasingly rely on silicon designed and tightly integrated in-house, from edge devices to custom chips deep in its data centers.

Kuo: Apple's AI Deal With Google Is Temporary and Buys It Time

Apple is preparing to mass-produce its own AI-focused server chips in the second half of 2026 amid reliance on a short-term partnership with Google to meet immediate AI expectations, according to analyst Ming-Chi Kuo. In a new post on X, Kuo said that Apple is facing mounting short-term pressure in artificial intelligence that is shaping its current strategy, even as it continues to pursue long-term control over core AI technologies. Kuo explained that Apple has encountered two immediate challenges in its in-house AI development that have effectively pushed it toward partnering with Google. The first is the need for a credible AI showing at WWDC later this year after previously announcing Apple Intelligence and significant Siri upgrades that have yet to materialize. The second is the rapid pace of improvement in cloud-based AI systems, which has raised expectations to a level where simply delivering on earlier promises may no longer be enough. Kuo argues that as AI capabilities have advanced, user perceptions of what constitutes a competitive assistant or system-level AI have shifted. In that context, even a fully delivered version of Apple Intelligence as it was originally presented could struggle to stand out, particularly without access to more powerful large-scale models. This has apparently driven an urgent need for Apple to supplement its current approach with more capable AI models from other companies. Kuo described Apple's AI deal with Google as a way to ease short-term pressure rather than a long-term strategic shift. He said on-device AI is unlikely to drive hardware sales in the near term, but the partnership gives Apple time to manage expectations across its platforms while continuing its own AI development. Over the longer term, Kuo said AI is expected to become central to hardware differentiation, operating system design, and the overall user experience, making ownership of core AI technologies increasingly important. He added that Apple's in-house AI server chips are expected to enter mass production in the second half of 2026, with Apple-operated data centers coming online in 2027. Kuo said this timing suggests Apple expects demand for on-device and hybrid AI workloads to grow more meaningfully from 2027, as it gains greater control over its server-side computing and infrastructure.

Apple's In-House Server Chips Reportedly Entering Mass Production In H2 2026, But The Company Is Expected To Face Two Short-Term Challenges With AI Development

* 0-20%: Unlikely - Lacks credible sources * 21-40%: Questionable - Some concerns remain * 41-60%: Plausible - Reasonable evidence * 61-80%: Probable - Strong evidence * 81-100%: Highly Likely - Multiple reliable sources The Apple Silicon transition isn't just stopping at mass producing workstation-based chipsets, because the technology giant is said to be working on a new chip codenamed 'Baltra,' with its primary function focused on AI inference. Now, according to one analyst, the Cupertino firm will commence the mass production of these in-house server chips in the second half of 2026. The update arrives shortly after it was reported that Apple had entered into an agreement with Google to leverage its Gemini model for the revamped version of Siri. The development of these in-house server SoCs has been talked about for a couple of years, with the same analyst pointing out two challenges for the iPhone maker concerning its AI development roadmap. In short, artificial intelligence is expected to become a pivotal element of hardware and software, with the technology titan severely missing out at this time. The proper rollout of Apple Intelligence in on-device AI form could arrive from 2027 onward Similar to how Apple maintained its relationship with Qualcomm until it had a potent 5G solution that eventually found its way into the iPhone 16e, the company has established a similar tag-team with Google, until it is successful in launching its own Large Language Model. According to TF International Securities analyst Ming-Chi Kuo, Apple is facing two short-term challenges in its in-house AI development quest. Even if the company fulfills its past promises around Apple Intelligence and offering a revamped Siri, it may not be sufficient, as there is a need to deliver a more capable on-device AI model. Of course, as witnessed by surging sales of the iPhone 17 lineup, which resulted in Apple surpassing Samsung to become the number one smartphone brand for 2025 with a 10 percent shipment growth, Kuo notes that on-device AI isn't expected to drive shipments in the near term. However, Google's partnership with Apple will only relieve pressure for a small period, and it is only a matter of time before AI 'becomes central to hardware, the OS and the overall user experience.' Kuo also states that long-term, Apple continues to face the challenge of gaining stronger control over its core AI technologies. Fortunately, the development of in-house server chips can eliminate various bottlenecks, as Apple has proven that its custom silicon delivers sufficient firepower and flaunts impressive memory bandwidth, both of which are crucial for AI processing. Best of all, these in-house server chips can operate at practically half the power, as demonstrated by the top-tier M3 Ultra, which consumes 55 percent less juice compared to x86 processors when running HandBrake. Kuo also predicts that, while mass production of Apple's in-house server chips will commence in H2 2026, the proper rollout of on-device AI could grow more meaningfully from 2027 onward. News Source: Ming-Chi Kuo Follow Wccftech on Google to get more of our news coverage in your feeds.