Archive · 16 Jan 2026
Apple to Produce AI Chips in 2026
Apple is planning to make its own AI chips and build its own data centers.
This is a big deal because it shows Apple wants to control more of its technology, from the chips in your iPhone to the cloud that runs its AI.
Apple is also working with Google to make Siri smarter using Google's AI.
Even though Apple is doing this, it's still working with other companies like Google and OpenAI.
This is important because it helps Apple catch up in the AI race and makes sure its technology is secure and private.
Apple is also trying to reduce its dependence on other companies like Nvidia and AWS.
This is a big step for Apple and shows it's serious about AI.
Apple plans to begin mass production of its own AI server chips in the second half of 2026.
The company is also reportedly planning to construct and operate its own data centers as soon as 2027.
Apple's AI server chips are designed for data centers to handle intensive AI tasks like training large language models.
Apple is working with Google to integrate Google's Gemini AI models into Siri, highlighting its dependence on external AI technology.
Apple's push for in-house AI infrastructure aims to reduce reliance on third-party providers and align with its focus on privacy and integration.
- Who
- Apple, Google, OpenAI, Nvidia, AWS
- What
- Apple's plans to produce its own AI server chips and data centers, and its partnership with Google for AI integration in Siri
- When
- AI chip production expected to begin in the second half of 2026, with data centers possibly operational as soon as 2027
- Where
- Globally, affecting Apple's ecosystem and data centers
- Why
- To reduce reliance on third-party providers, gain control over cost and performance, and align with Apple's focus on privacy and integration
- Companies Involved
- Apple, Google, OpenAI, Nvidia, AWS
- Deal Details
- Multi-year partnership for AI integration
- Technology Used
- Google's Gemini models, Apple's in-house AI server chips
- Cost to Apple
- Reportedly $1 billion per year to Google
- Existing Partnership
- Apple already pays Google for default search on iPhones
- Apple's Margins
- 47% gross margins and 32% operating margins in FY25
- Smartphone Market
- Expected to shrink by 2.1% in 2026
- Key Executives Lost
- John Giannandrea, former AI chief
- AI Chip Production
- Expected to begin in the second half of 2026
- AI Data Centers
- Planned construction and operation by Apple
Sources
The Apple-Google deal: A marriage of convenience or a strategic surrender?
Jeff Bezos is no longer the world’s third richest as this tech founder jumps ahead amid Alphabet’s $4 trillion surge
Apple likely to start producing AI chips in 2026, eyes in-house data centres
