SAN FRANCISCO – Apple has been developing a home-grown chip to run artificial intelligence (AI) tools in data centres, though it is unclear if the semiconductor will ever be deployed, The Wall Street Journal reported.

The effort would build on Apple’s previous efforts to make in-house chips, which run in its iPhones, Macs and other devices, according to the Journal, which cited unidentified people familiar with the matter.

The server project is code-named ACDC within the company, the newspaper said.

Apple shares rose as much as 1.2 per cent in late trading on May 6. They had been down 5.6 per cent in 2024 through the close. A representative for Apple did not immediately respond to a request for comment.

Apple has been playing catch-up with its tech peers in generative AI, the technology underpinning chatbots and other popular new tools. But the company is preparing to unveil a new AI strategy at its Worldwide Developers Conference in June.

Its approach is expected to focus on new proactive features that can assist users in their daily lives, Bloomberg has reported.

Apple also has held talks with potential partners such as Alphabet’s Google and OpenAI to supply generative AI services.

If Apple goes ahead with its own server processor, it would follow several of the largest tech companies in doing so.

Amazon.com’s AWS, Google, Microsoft and Facebook parent Meta Platforms all operate data centres that run on in-house designed semiconductors to some extent. Such efforts have eroded the traditional dominance of Intel’s components. BLOOMBERG