AsianFin--Apple has been working on its own chip designed to run artificial intelligence software in data center servers, a move that has the potential to give the company an advantage in the AI arms race, WSJ reported.

Over the past decade, Apple has emerged as a leading player designing chips for iPhones, iPads, Apple Watch and Mac computers. The server project, which is internally code-named Project ACDC—for Apple Chips in Data Center—will be used to to run the company’s servers, according to people familiar with the matter.

Project ACDC has been in the works for several years and it is uncertain when the new chip will be unveiled, if it happens at all. Apple has promised many new AI products and announcements at its Worldwide Developer Conference in June.

Collaborating closely with chip-making partner Taiwan Semiconductor Manufacturing Co., Apple has been actively involved in the design and production initiation of these chips. However, the outcome remains uncertain, according to sources familiar with the matter.

Regarding Apple's server chip, it is expected to be primarily geared towards running AI models for inference rather than training, an area currently dominated by chip maker Nvidia.

The timing of Apple's potential server chip release could be strategic, especially considering competitors like Microsoft and Meta, who have swiftly realigned their businesses around generative AI following the rise of OpenAI's ChatGPT service.

Investors in Apple have expressed impatience over the perceived lack of progress in AI development, especially as rival tech companies have seen significant boosts in their stock prices following splashy AI announcements.

Microsoft, in particular, has experienced substantial growth, fueled by its close partnership with OpenAI. Earlier this year, Microsoft surpassed Apple as the world's most valuable company, a lead that continues to expand.