Apple is reportedly collaborating with Broadcom to develop its inaugural server chip, a chip meant for artificial intelligence processing. The announcement aligns Apple with other technology companies in developing proprietary chips to power compute-intensive AI services. As Nvidia’s chip technology is becoming more important to tech companies worldwide, Apple is looking to Broadcom to help develop an alternative and limit reliance on Nvidia.

The AI chip, internally named Baltra, is anticipated to be ready for mass production by 2026. Apple plans to utilize one of Taiwan Semiconductor Manufacturing’s advanced processes, known as N3P, for the chip’s fabrication, according to reports.

Nvidia and Apple Continue to Do Battle in AI Space

Nvidia’s costly and limited-supply processors are in high demand, a trend that has lasted throughout the past year. As a result, the company is growing in value, quickly catching up with Apple and other big-tech players. Apple and Nvidia aren’t necessarily rivals, however, in the race for top market capitalization, this move helps AAPL just a bit more.

The company reclaimed the top market cap position from Nvidia earlier this year. However, it has also lagged in the ongoing AI arms race. With Nvidia factoring in so heavily to that technology, it is expected to continue surging. Moreover, Apple has released its first batch of AI tools to a somewhat muted response.

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However, things are still looking up for the Tim Cook-led company. The firm took the top spot from Microsoft, which was last year’s top-managed company. Specifically, it ended MSFT’s four-year stretch atop the list.

Heading into 2025, all eyes are going to be on the potential for one company to be the first to reach a $4 trillion market cap. The question is, just who will it be? There are many who believe Apple can continue its record-setting trend and reach the mark. However, others are all-in on Nvidia, believing in the chipmaker’s importance to the surging AI sector. Despite efforts by major tech companies to reduce reliance on Nvidia, challenges remain. Google also collaborates with Broadcom for its AI chips, however, the latter is still significantly behind Nvidia.