Apple Explores Acquisitions to Boost AI Server Chip Capabilities

July 21, 2026
Apple is exploring the purchase of chip startups to strengthen its AI server processors, following internal performance challenges with its current M2 Ultra-based systems.
Apple Explores Acquisitions to Boost AI Server Chip Capabilities
Image: Daniel L. Lu

Apple is looking to acquire chip companies as it works to improve its server processors for artificial intelligence, reports Reuters. The company has approached several chip startups and held discussions with bankers about possible acquisitions.

The move follows ongoing issues with Apple's internal AI servers, which currently use M2 Ultra chips originally designed for Macs. These chips have not met performance targets for the workloads the company intends to support. Insiders say a new server chip, known internally as Baltra, has been delayed. Baltra is being developed with Broadcom and is intended for AI inference tasks using TSMC's 3-nanometer process.

Earlier this year, Apple tried running Google's Gemini models on its internal infrastructure as part of a Siri update but found that the M2 Ultra-based servers could not handle large models. This prompted Apple to run parts of the system on Nvidia hardware through Google Cloud. The company's last significant acquisition occurred in January, when it bought Israeli AI firm Q.ai.

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