Apple is significantly expanding its silicon strategy, with custom-designed chips slated to power future smart glasses and advanced AI server infrastructure. This move signifies a major step for the tech giant, potentially allowing it to compete with companies like Meta in the wearable technology market and enhance its AI capabilities across its product ecosystem.
Smart Glasses Chip Development
Apple is developing a custom chip specifically for its upcoming smart glasses. This chip draws inspiration from the Apple Watch's power-efficient architecture, optimized to maximize energy savings, which is crucial for lightweight wearable devices. The chip is being tailored to support multiple cameras and is expected to offer real-time environmental scanning with built-in AI to assist users. While not full-blown AR glasses initially, the device will likely function similarly to Meta's Ray-Ban smart glasses, capable of taking photos, playing audio, and working with a voice assistant. Mass production of this chip could begin as early as late 2026, suggesting a potential launch within the next two years. The development of these smart glasses chips may position Apple as a strong competitor to existing products like Meta Platforms' Ray-Ban glasses.
AI Server Infrastructure
In addition to smart glasses, Apple is also developing processors for its Mac lineup and, for the first time, dedicated AI servers. These servers are expected to support the "Apple Intelligence" platform, which powers various AI-based features on Apple devices. The company is preparing new Mac processors, potentially named the M6 and M7, as part of its broader effort to enhance AI capabilities across its products. The AI server chips are part of a project codenamed "Baltra" and are expected to be completed by 2027. These chips could feature double, quadruple, or even eight times the number of CPUs and GPUs compared to the current M3 Ultra. This would translate to a chip with potentially 64 to 192 CPU cores and 160 to 480 GPU cores. To enhance its AI infrastructure, Apple is constructing a 250,000-square-foot server manufacturing facility in Houston, Texas, slated to open by 2026. This facility will support the development and use of Apple Intelligence.
Broader Silicon Strategy
These developments are part of Apple's broader strategy to control its silicon design and reduce reliance on external semiconductor manufacturers. Apple has been designing its own chips for various devices, including iPhones, iPads, Macs, Apple Watches, and AirPods. This allows the company to optimize performance, power efficiency, and integration across its ecosystem. Apple is also reportedly working on chips for future AirPods and Apple Watch models equipped with cameras. These chips, codenamed "Nevis" for the Apple Watch and "Glennie" for the AirPods could be ready by 2027.
Competition and Future Outlook
Tim Cook is reportedly determined to compete with Meta in the wearable eyewear market. Apple is exploring both non-AR smart glasses and true AR headsets. The initial smart glasses will likely focus on environmental awareness through cameras and AI, similar to Meta's Ray-Ban smart glasses. Apple's investment in custom silicon for AI servers and devices marks a significant step toward enhancing its AI capabilities and expanding its product ecosystem. By controlling both hardware and software, Apple aims to deliver optimized performance, robust privacy protections, and seamless integration across its devices.
