Apple is actively seeking to acquire semiconductor startups to strengthen its ability to build AI server processors, according to multiple reports from July 2026 [1, 2, 3, 4, 5, 6, 7]. The company faces performance challenges with its current AI servers that run on internally designed M2 Ultra chips. "Apple has faced performance issues with servers that run on its M2 Ultra chips used for AI tasks," reported The Information based on industry sources [1].
Earlier this year, Apple attempted to run Google's Gemini large language model on its internal servers as part of upgrades to its Siri voice assistant. The effort revealed that the M2 Ultra chip was insufficient for the workload, forcing Apple to rely on Nvidia chips hosted on Google Cloud instead [1, 3, 4, 6].
Apple originally planned to ship a next-generation AI server chip, codenamed "Baltra," in 2026. However, this project has been delayed, contributing to the push for acquisitions to accelerate development [1, 3, 4, 6, 7]. Anonymous sources cited by 36氪 noted, "苹果正在寻找收购芯片公司以加强其构建用于运行人工智能的服务器芯片的努力" (Apple is looking to acquire chip companies to bolster its efforts to build AI server chips) [2].
The company has historically avoided large acquisitions but did acquire Israeli AI startup Q.ai in January 2026 for approximately $2 billion to enhance its AI audio technology [1, 3, 4, 6, 7]. Before that, its largest acquisition was Beats in 2014 for $3 billion. Apple’s cash and cash equivalents totaled about $45.57 billion as of March 28, 2026, giving it ample financial firepower for further deals [1, 3, 4, 5, 6].
In addition to targeting startups, Apple announced a multi-year chip supply deal with Broadcom valued at over $30 billion in June and July 2026. This contract aims to boost domestic sourcing of chips for its hardware ecosystem [1, 3, 4, 5, 6, 7].
Apple has been developing AI server chip infrastructure for about five years, but less aggressively than major North American cloud providers [7]. The company plans to use acquisitions to speed up its AI chip progress and overcome current bottlenecks [6, 7].
Apple is actively in talks with bankers and multiple semiconductor startups regarding potential acquisitions as part of its broader AI chip strategy [1, 2, 3, 6, 7]. The company’s next steps likely include closing key deals to accelerate chip development and catch up with competitors in large-scale AI processing.
