Apple’s Plans for M2 Ultra and M4-Powered AI Servers Reportedly Underway

Apple has begun developing its AI servers with the M2 Ultra chip, according to Haitong analyst Jeff Pu’s supply chain checks. MacRumors reported that Pu’s information was included in a recent investor note from the firm. MacRumors stated that Pu claimed Foxconn is currently building AI servers as well with the M2 Ultra and plans to produce AI servers using the still-unreleased M4 chip by the end of 2025.

Apple

Apple to Launch M2 Ultra and M4-Powered AI Servers

The news has been expressed previously by a reputable Weibo informant, claiming that the tech company is producing its AI server processor based on TSMC’s 3nm process and aims to begin production in the second half of 2025, which coincides with the M4-powered AI server point. The progress of the tech giant toward developing its own AI server illustrates an ongoing trend of Apple attempting to vertically integrate the supply chain.

image 234 jpg Apple's Plans for M2 Ultra and M4-Powered AI Servers Reportedly Underway

Apple prototypes will allow for the increase of data center performance and bolster the future of AI tools that rely on the cloud. Even if many upcoming AI tools depend on on-device processing, it is unrealistic to expect that some functions will not continue to rely on the cloud. When these M4-based servers become operational in data centers, Apple’s new AI strategy will be well along.

Following other various industry projections, Pu expects the tech company to present what is being dubbed on-device AI capabilities at WWDC in June, including audio recording interpretation, photo and video editing, and live translation. While the iPhone 16 lineup is projected to introduce various AI features, the iPhone 17 models slated for 2025 are purportedly positioned as more AI-centric devices.

image 235 jpg Apple's Plans for M2 Ultra and M4-Powered AI Servers Reportedly Underway

This strategy indicates Apple’s broad objective of assembling a tightly integrated supply chain. In addition to enhancing data centers’ operating efficiencies, Apple experiments with a novel tactic to integrate AI services. Moreover, it hopes to improve its AI-driven services by incorporating the entire on-device processing in a single branch.

This strategy solidifies Apple’s commitment to progress and self-reliance throughout its product compilation. Pu’s analysis assumes a significant shift in Apple’s AI strategy toward in-sourcing and integration. This interpretation is consistent with its overall mission of enriching the client’s experience through progressive technology and integration with its hardware and software.

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