Apple now reportedly developing its own chip to run AI software inside data centers

according to the Wall Street Journal. Our dear de Boza is taking a look at the AI

chip arms race for today's Tech Jack morning D. Good morning Carl. I know you're going to like this name. It's apparently code-named Project

ACDC for Apple Chips and Data Center. And here may lie Apple's advantage in the Gen-A-I

race. This company has the most experience in

success in designing its own custom silicon even if it has been a laggard in

terms of laying out that called a quote outrageously powerful chip for AI but AI chips for data centers that's a

different beast and an unproven area and while that mline of silicon has improved

power efficiency performance across Apple devices.

Apple has struggled in other areas like developing its own cellular wireless chip

to replace Qualcomm Silicon.

Now the journal reports that Apple's working with Taiwan semi on a server chip that runs AI

models so that's the inference part of AI versus training but if that is

successful that could give Apple more control over its AI products and ambitions

when it does lay that out, expected at W.W. D.C. in a few weeks.

Now, as we've discussed nearly all the mega caps are trying to develop

their own Gen AI custom in-house chips. It's about cost and efficiency and

countering NVIDIA's dominance. Billionaire investors Stanley Drucken Miller talked about Gen AI

and trimming his NVIDIA position on Squawk this morning.

We've had a hell of a run.

A lot of what we recognized has become recognized by the marketplace now.

Long term, we're as bullish on AI as we've ever been.

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