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Apple Approaches Chip Startups for Potential Acquisitions as It Looks to Strengthen AI Efforts: Report

Apple Approaches Chip Startups for Potential Acquisitions as It Looks to Strengthen AI Efforts: Report

Apple is reportedly facing challenges with the performance of its in-house AI servers.

Written by Nithya P Nair, Edited by Rohan Pal | Updated: 16 July 2026 11:29 IST

Apple Approaches Chip Startups for Potential Acquisitions as It Looks to Strengthen AI Efforts: Report

Photo Credit: Reuters

Apple is currently relying on M2 Ultra-powered servers

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Highlights

Apple is reportedly looking to acquire AI semiconductor startups
Apple previously brought small startups like Beats and Q.ai
The company is gearing up for a major leadership transition

Apple is known for designing custom silicon for its iPhone and Mac models. The Cupertino-based company now seems to be preparing for a broader push to expand its AI processing power by acquiring AI chip companies. Apple is said to have approached investment bankers and several chip makers to assess their interest in a possible acquisition. The iPhone maker, meanwhile, is said to be working on a new next-generation AI server chip. Earlier this year, Apple made a deal with an Israeli AI audio startup.

Apple Considers Chip Startup Buyouts

The Information, citing unnamed sources, reports that Apple has approached several semiconductor startups to assess their interest in a potential acquisition. The company also reportedly had discussions with investment bankers about possible deals.

Apple Discussion

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Apple's interest in acquiring chip startups reportedly comes as it faces challenges with the performance of its in-house AI servers, which currently rely on its custom-designed M2 Ultra chips. The company earlier reportedly planned to launch the next-generation chip codenamed "Baltra" this year, but the project has been reportedly delayed. Currently, more demanding tasks are handled by Gemini-powered Siri, which runs on Google Cloud's Nvidia GPUs.

Apple Clears Key Hurdle to Launch Its Upcoming AI Features in China

Acquisition of AI chip companies is expected to mark a shift from Apple's previous pattern of buying small startups. Back in 2024, the brand acquired Beats for $3 billion (roughly Rs. 28,944 crores) to acquire Beats in 2014. Apple purchased Intel's smartphone modem division in 2019. In January this year, Apple acquired an Israeli AI startup, Q.ai, for close to $2 billion (roughly Rs. 17,200 crore). Apple is rumoured to be in talks with PrismML.

Apple Might Stick With a 60Hz Panel for Its Upcoming OLED iPad Mini

All of this comes as Apple is gearing up for a major leadership transition in the coming months. Senior Vice President of Hardware Engineering John Ternus is set to replace Tim Cook as CEO on September 1. The changes also coincide with Apple's new legal action against OpenAI. Last week, the Cupertino-based company reportedly filed a lawsuit against OpenAI, alleging that it misappropriated Apple's intellectual property.

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Further reading: Apple, Apple M2 Ultra

Nithya P Nair

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Nithya P Nair is a journalist with more than five years of experience in digital journalism. She specialises in business and technology beats. A foodie at heart, Nithya loves exploring new places (read cuisines) and sneaking in Malayalam movie dialogues to spice up conversations. More