Apple teams up with Broadcom to develop powerful AI server chip

Abdullah Mustapha

May 12, 2025

Image source: GoFloaters

Apple and Broadcom joined forces to create a new server processor dubbed Baltra. The chip is meant for workloads that employ artificial intelligence (AI) and managing big data. The chip represents a major milestone in Apple’s journey in the data center segment.

Apple Merges with Broadcom on High-End AI Server Chip

According to Bloomberg, the Baltra chip will power the services that are hosted on Apple’s AI platform, which is referred to as Apple Intelligence. It will not only deliver high-performance CPUs. It will also feature custom AI accelerators to manage complex machine learning tasks. They can consist of custom tensor and matrix units, which are commonly used in AI models.

Apple is experimenting with different versions of the chip. They have between two to eight times the number of cores available in the current M3 Ultra chip. This implies that Baltra would be much more powerful than Apple’s existing chips.

One of the most impressive things about Baltra is that it uses High Bandwidth Memory (HBM). This is quite a new memory technology that allows for faster data transfer. It is most suitable for applications that require good performance and efficiency.

Baltra will also be scalable in its design. This will enable it to be deployed in all the data centers, from small setups to systems at an enormous level. Its modularity may also enable Apple to compete in the growing market for AI and cloud computing.

Apple and Broadcom Collaborate on Powerful New Server Chip Designed for AI and Data Centers

The chip is not yet complete. Apple will release it later in 2027. But the company has other chip projects beyond Baltra. Apple is also designing new processors for future Macs and iPads.

By designing its own server chips, Apple desires more control over its technology. That can lead to better performance, power management, and enhanced security. It also reduces reliance on outside chipmakers.

Read Also: Apple to launch a foldable iPhone and smart glasses in 2027

The partnership with Broadcom is noteworthy. Broadcom knows networking and chip making. The two companies together want to create a server chip that will be capable of servicing the requirements of future AI systems.

Apple entering this space means that it’s not just consumer electronics for it. It likes to get more involved in AI and cloud infrastructure too.

What are your thoughts on Apple’s chip strategy? Will it go well in the data center market?

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