Apple has announced a partnership with Broadcom to develop its first dedicated AI server chips, aimed at enhancing server performance for future AI applications. Code-named Baltra, this AI-focused chip is set to begin production in 2026. The collaboration highlights Apple's intention to manage server needs for its growing AI initiatives more effectively. Notably, the chip will be developed by Apple's silicon design team based in Israel, with Broadcom contributing its networking technology. This partnership follows Apple's previous collaborations with Google Cloud and Amazon Web Services for AI-related computing. Broadcom, founded in 1991 and based in San Jose, specializes in semiconductor and software technologies across data centers and networking solutions. Complementing this development, Taiwan Semiconductor Manufacturing Company will handle mass production. Following the announcement, Apple's stock experienced a slight increase, whereas Broadcom's shares rose significantly before stabilizing in after-hours trading.

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