Apple NASDAQ:AAPL is reportedly exploring acquisitions in the AI chip sector as it looks to strengthen its artificial intelligence capabilities, according to The Information.
The company has held discussions with bankers in recent months and has approached several semiconductor startups about potential acquisitions. Apple has not commented on the report.
Apple designs the iPhone, Mac, iPad and other consumer devices while developing its own custom silicon. Its A-series and M-series chips have become a key competitive advantage, but reports suggest its current server chips are struggling with the most demanding AI workloads.
Apple has a long history of using acquisitions to build its chip business, including its $278 million purchase of P.A. Semi in 2008. Earlier this year, it reportedly spent about $2 billion to acquire AI startup Q.ai, while it also recently extended its custom chip partnership with Broadcom.