Apple and Broadcom Develop AI Server Chip 'Baltra'

Apple is reportedly collaborating with Broadcom to develop its first server chip specifically for artificial intelligence, known as 'Baltra', which is expected to enter mass production by 2026. This strategic move aims to reduce Apple's reliance on Nvidia's costly processors and enhance its AI capabilities, aligning with similar efforts by other tech giants to create custom chips. Broadcom's role includes providing critical networking technology to handle the computational demands of AI, which has already caused a rise in its stock by 5%. This development is part of a broader $45 billion custom chip market, where Broadcom and Marvell are key competitors. The partnership signifies Apple's continued investment in AI infrastructure, potentially transforming its AI-powered offerings like Apple Intelligence. This initiative could also lead to advancements in Apple's virtual assistant, Siri, offering more conversational capabilities akin to ChatGPT by 2026.