Apple’s AI tools will be powered by in-house server chips, allowing the iPhone maker to boost security and privacy as it releases iOS 18. Apple has put Mac-grade chips in data centers for fall launch in tandem with iOS 18, according to a new report by Bloomberg.
Code named ACDC—Apple Chips in Data Centers—the new iOS 18 move will allow the iPhone maker to offer AI features using on-device and cloud approaches for powerful yet secure and private AI.
Apple planned the move three years ago, but it has been accelerated to meet the iOS 18 timeline after various AI launches such as OpenAI’s ChatGPT, the report says.
Apple unveiled its M4 chips at its iPad event earlier this week, which include upgrades to what it calls the neural engine enabling powerful AI features. Apple CEO Tim Cook called it “an outrageously powerful chip for AI.”
Earlier this week, the Wall Street Journal wrote how Apple placing chips in its own servers would offer the iPhone maker the potential to gain “an advantage in the AI arms race.”
Investors certainly like the idea of it—Apple enjoyed a session high of $184.59 in New York trading after Bloomberg reported the details.
Apple’s AI Strategy in iOS 18 And Beyond
On-device AI is Apple’s preferred strategy, because it allows the privacy and security that differentiate the iPhone maker from rival Google’s Android. Bloomberg recently reported that Apple is developing its own large language model (LLM) to power on device generative AI features in the iPhone 16 series.
Bloomberg Apple commentator Mark Gurman wrote in his PowerOn newsletter that while Apple’s technology might not be superior to rivals’, the way implements it could “still be a game changer.”
Apple has also bought AI start up DarwinAI, which has developed tech that can make AI systems smaller and faster—something that could benefit Apple’s on-device strategy.
Last week, on an earnings call, Apple CEO Tim Cook said the iPhone maker believes “we have advantages that will differentiate us in this new era, including Apple’s unique combination of seamless hardware, software and services integration.”
The firm is also apparently in talks with Google and OpenAI to offer other AI features powered by outside firms.
iOS 18 AI Features Are Coming Soon
Apple’s iOS 18 update will be launched at its Worldwide Developers Conference in June and will arrive this fall. So far, it’s emerged that iOS 18 will include multiple AI-enabled features such as Safari Web Eraser—essentially an ad blocking tool. The new iPhone software will also come with AI enhancements to apps such as Siri and Apple Music.
There’s no doubt about it—iOS 18 is going to be a huge update for your iPhone, coming with powerful AI features as well as the security and privacy users have become accustomed to.