Apple Explores Acquisitions to Strengthen AI Infrastructure

Apple Explores Acquisitions to Strengthen AI Infrastructure

Apple’s current M2 Ultra-powered servers don’t seem to be cutting it.

Apple doesn’t traditionally prioritize acquisitions, but the company is reportedly exploring deals with semiconductor manufacturers and financial institutions to enhance its AI computing capabilities. This potential shift in strategy highlights its desire to reduce reliance on third-party infrastructure, particularly for demanding AI workloads.

According to The Information, Apple faces limitations with servers based on its M2 Ultra chips, which handle some AI tasks but struggle with heavier workloads. Functions like Siri’s AI processing reportedly depend on NVIDIA chips hosted on Google Cloud, suggesting Apple’s in-house infrastructure remains inadequate for advanced machine learning applications.

Bloomberg noted last week that Apple’s next-generation server chip, based on the M7 Ultra, isn’t expected until 2029, while current upgrades will involve M5 Ultra chips. The company initially planned to launch a new server chip codenamed “Baltra” this year but reportedly pushed back the timeline. Recently, Apple secured a $30 billion chip supply deal with Broadcom for U.S.-made components.

Apple’s chip development expertise centers on consumer electronics, which explains its interest in strengthening server-side capabilities. Its history includes acquiring PA Semi for $278 million in 2008, though major AI-focused deals remain rare. This year, Apple purchased AI startup Q.ai for nearly $2 billion, its second-largest acquisition after paying $3 billion for Beats in 2014.

With AI chips being critical to modern infrastructure, Apple may need to invest heavily in acquisitions to secure talent and technology. The company’s $45.6 billion cash reserve as of March provides financial flexibility for such moves, positioning it to compete in the escalating arms race for AI hardware dominance.

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