Apple in talks with Foxconn to build AI servers to boost computing power as Apple Intelligence demand grows

Apple is reportedly in discussions with Foxconn, its primary iPhone supplier, to manufacture specialized servers for its Apple Intelligence AI platform. This move aims to enhance Apple’s computational capabilities to support its expanding suite of AI-driven services.

Apple’s gearing up to supercharge its Apple Intelligence services, and it’s eyeing Foxconn for help. But here’s the snag: Foxconn, Apple’s biggest iPhone supplier, might already be stretched too thin to meet Apple’s new needs.

With Apple Intelligence — its fancy suite of AI features — taking centre stage, the company wants to up its computing game by building custom servers. And naturally, Apple’s turning to Foxconn, a partner it already knows and trusts.

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The idea is to use Apple Silicon to power these AI servers, the same chip tech that’s already humming along in Macs and iPads. But compared to NVIDIA, which has Foxconn busy with its own massive projects, Apple’s server demands are actually pretty small.

NVIDIA’s GB200 system is the current heavyweight champ in AI computing, and Foxconn is neck-deep in building data centres for them. That’s why Foxconn might not be able to take on Apple’s latest challenge. Rumour has it that the tight schedule and resources already allocated to NVIDIA could make things tough for Apple.

So, Apple’s not putting all its eggs in one basket. It’s exploring options like teaming up with Lenovo and its subsidiary LCFC or even looking into smaller suppliers like Universal Scientific Industrial. Word on the street is that Apple and Lenovo are considering making servers outside of China, a move that could add some flexibility.

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In the meantime, Apple isn’t waiting around. It’s rolling out Apple Intelligence features on the iPhone 15 Pro, the upcoming iPhone 16 models, and M-series Macs and iPads. For now, these features are only available in US English, but Apple plans to roll out more languages soon.

So, while Apple’s still figuring out the server situation, it’s clear they’re not slowing down their AI ambitions anytime soon. The big question is whether Foxconn can squeeze in Apple’s latest request or if Apple will have to get creative with its tech partnerships.