Apple Said to Explore Acquiring AI Chip Companies

Apple is exploring potential acquisitions of chip companies to advance its development of server chips designed to run artificial intelligence. Sources familiar with the matter indicate that the iPhone maker has been in discussions with bankers about possible deals in recent months.

The company has also approached semiconductor startups to gauge their interest in being acquired. These efforts to acquire chip expertise come as Apple faces performance challenges with its internal AI servers.

While Apple's previous acquisitions have typically been valued in the hundreds of millions of dollars, the company may now be prepared to pursue multi-billion dollar deals, comparable to its past purchases of Beats and PA Semi.

In February, Apple finalized its acquisition of Israeli machine learning firm Q.Ai for an estimated $2 billion. Q.Ai specializes in interpreting voice through facial micro-expressions. The earlier acquisition of PA Semi significantly contributed to technological advancements in Apple's A-series processors and the development of Apple Silicon.