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Cupertino Today
By the People, for the People
Apple's Baltra ASIC Aims to Solve AI Server Woes
The majority of Apple's current AI servers are reportedly sitting idle on shelves, leading the company to rely on Google's infrastructure.
Mar. 2, 2026 at 1:47pm
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According to reports, around 90% of Apple's Private Cloud Compute capacity for AI servers is sitting idle on warehouse shelves, as the uptake of Apple's AI features has fallen far short of expectations. This has led Apple to turn to Google's servers and AI models to power the next-gen Siri chatbot. To address these issues, Apple is developing its own custom Baltra ASIC chip, which could help the company overcome its chronic inefficiencies in the server space and reduce its reliance on Google.
Why it matters
Apple's reliance on Google's infrastructure for its AI features raises concerns about the company's ability to maintain control over its own technology and user data. The Baltra ASIC could be a crucial step in allowing Apple to regain autonomy in this area, but the project faces significant challenges and delays.
The details
The current use of AI servers for Apple Intelligence features has fallen far short of the company's original expectations, leading to a situation where around 90% of Apple's Private Cloud Compute capacity is sitting idle on warehouse shelves. This is due to the fragmented nature of Apple's AI infrastructure, with different teams using disparate technology stacks rather than a unified server tech stack. As a result, Apple has turned to Google's servers and AI models to power the next-gen Siri chatbot, which will be baked into Apple's software rather than debuting as a standalone app. To address these issues, Apple is developing its own custom Baltra ASIC chip, which could feature various chiplets designed for specific functions. The Baltra-based servers are currently expected to undergo mass deployment in 2027 or 2028.
- In Spring 2024, multiple reports emerged that Apple was working with Broadcom on its first AI server chip, codenamed "Baltra".
- The Baltra-based servers are currently expected to undergo mass deployment in 2027 or 2028.
The players
Apple
The tech giant that is developing the Baltra ASIC chip to address its AI server woes and reduce reliance on Google's infrastructure.
Broadcom
The semiconductor company that Apple is working with on the development of the Baltra ASIC chip.
The tech company whose servers and AI models Apple is currently relying on to power the next-gen Siri chatbot.
Foxconn
The company that has been tasked with producing the Baltra-based servers for Apple.
What’s next
The Baltra-based servers are currently expected to undergo mass deployment in 2027 or 2028, which could be a crucial step for Apple in regaining autonomy over its AI infrastructure and reducing its reliance on Google.
The takeaway
Apple's struggles with its AI server infrastructure highlight the challenges the company faces in maintaining control over its technology and user data. The development of the Baltra ASIC chip could be a significant step in addressing these issues, but the project faces significant delays and the company's continued reliance on Google's services in the meantime raises concerns about its ability to fully regain autonomy in this area.
