Apple wants to build its own AI servers – but will Foxconn help?

Apple is diving deeper into the world of artificial intelligence, and it has big plans. The tech giant wants to build its own powerful AI servers, and it’s hoping to work with Foxconn, its long-time manufacturing partner. But there’s a catch: Foxconn is already super busy.

Here’s the backstory: Apple’s new suite of AI tools, humbly called Apple Intelligence (yeah, that's Apple's way of naming things!), is designed to make its devices even smarter.

To power it all, Apple wants to use its own servers built with Apple Silicon chips – the same advanced chips found in Macs and iPads today. These servers would help Apple handle complex AI tasks directly, without depending so heavily on outside providers.

Foxconn, which assembles millions of iPhones, is Apple’s top choice for this new venture. However, the supplier is currently all hands on deck building powerful AI servers for Nvidia, the company behind some of the world’s fastest AI systems. With Foxconn’s resources already stretched thin, Apple’s plans hit an unexpected obstacle.

Not giving up, Apple is now in talks with other companies like Lenovo and smaller suppliers to explore new partnerships. There’s even a possibility that some of Apple’s servers could be built outside of China – a strategic move that might give Apple more flexibility in the future.

While Apple Intelligence is still in its early stages, it’s already available on the latest iPhones, iPads, and Macs. For now, the tools are only offered in US English, but Apple has promised to bring more language options soon.

Apple’s determination to build its own AI infrastructure could be a game-changer. I mean, if they do not succeed in pushing Apple Intelligence into the top league, things could go south pretty quickly. And that's a race Apple simply can't afford to lose, right?