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Apple Explores AI Server Production With Foxconn To Meet Rising Demand For Apple Intelligence

Apple is reportedly exploring a new partnership with Foxconn, its main iPhone manufacturer, to create specialized servers that would power the Apple Intelligence AI platform. This collaboration aims to enhance Apple’s computing power to meet the growing demands of its AI-based services. As Apple seeks to scale up its Apple Intelligence capabilities, it’s looking to […]

Apple is reportedly exploring a new partnership with Foxconn, its main iPhone manufacturer, to create specialized servers that would power the Apple Intelligence AI platform. This collaboration aims to enhance Apple’s computing power to meet the growing demands of its AI-based services.

As Apple seeks to scale up its Apple Intelligence capabilities, it’s looking to Foxconn to help boost its computing infrastructure. However, Foxconn might be facing challenges in accommodating Apple’s needs, given its current commitments. Already heavily engaged with NVIDIA’s AI projects, including the development of the powerful GB200 system, Foxconn is busy constructing data centers, which could make it difficult to take on additional work for Apple.

Also read: Apple to Open Four New Stores in India, CEO Tim Cook Confirms

Apple intends to utilize Apple Silicon in these custom AI servers—the same advanced chips used in its Macs and iPads. However, compared to NVIDIA’s large-scale demands, Apple’s server needs are relatively modest. The potential constraints on Foxconn’s resources mean Apple may have to consider alternative options.

To diversify its approach, Apple is reportedly exploring partnerships with other suppliers, such as Lenovo and its LCFC subsidiary, along with smaller companies like Universal Scientific Industrial. Speculation suggests that Apple and Lenovo might even produce servers outside China, a strategic move that could provide more flexibility.

While these plans develop, Apple continues to roll out Apple Intelligence features on its latest devices, including the iPhone 15 Pro, upcoming iPhone 16 models, and M-series Macs and iPads. Currently, these features are only accessible in US English, but Apple has plans to expand language support soon.

As Apple navigates these supply chain considerations, it remains committed to its ambitious AI roadmap. The key question is whether Foxconn can make room for Apple’s new request or if Apple will need to innovate with other tech partnerships.

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