Apple quietly develops chips for smart glasses and AI servers, expanding its silicon ambitions beyond Macs and iPhones.
Apple is quietly gearing up for a new phase in its chip strategy — and this one isn’t just about iPhones or MacBooks. According to multiple reports, the tech giant is deep in development on custom silicon for two ambitious fronts: lightweight smart glasses and powerful AI server infrastructure.
It’s a glimpse into Apple’s longer-term vision—one in which wearables blend into daily life and AI isn’t just in your phone but also in the cloud.
A Chip for Your Face?
Let’s start with the wearables. Apple is working on a new low-power chip designed specifically for its in-development smart glasses, Bloomberg reports. This isn’t an off-the-shelf processor either. It’s based on technology found in the Apple Watch — optimized for performance without draining battery — and it’s built to handle multiple camera inputs.
The smart glasses, which could arrive as soon as 2027, are Apple’s more practical alternative to the high-end Vision Pro headset. And yes, they’re likely to go toe-to-toe with Meta’s Ray-Ban smart specs.
TSMC, Apple’s go-to chip manufacturer, is expected to start producing the glasses chip by late 2026.
AI in the Cloud, Apple-Style
Then there’s the server side of things. Apple has long been known for its hardware-first approach, but with the rise of ChatGPT and generative AI, the company seems determined not to be left behind. Internally, it’s building out custom chips for AI servers under the codename “Project ACDC” — according to Bloomberg, they’re meant to power Apple’s future cloud-based AI services, like Siri upgrades and system-wide assistance.
These chips, dubbed “Project Baltra,” aren’t expected to launch before 2025, but they signal Apple’s growing interest in not just hosting AI, but owning the full AI stack — from device to data center.
M6 and M7 Macs Coming Too
Apple's silicon design team is also working on new processors for future MacBooks. Codenamed "Komodo" and "Borneo," these chips are expected to succeed the current M5 series, potentially branded as M6 and M7. Another advanced chip, "Sotra," is also in development, signaling Apple's continuous innovation in personal computing hardware.
By investing in custom silicon across various product lines, Apple aims to enhance performance, ensure tighter integration between hardware and software, and maintain a competitive edge. This approach also reduces dependency on external suppliers, aligning with Apple's long-term strategy of vertical integration.
As per Apple, the future will be powered by the deep integration of hardware and software. And that future, increasingly, is one Apple wants to build itself — chip by chip.
