Apple has been contemplating the launch of cloud services aimed at app developers, potentially positioning itself as a competitor to major players like Microsoft, Google, and Amazon. Many developers depend on cloud servers for essential tasks, including data storage and off-device processing. If Apple proceeds with this initiative, it could expand its influence in the tech industry significantly. According to sources, Apple has been internally discussing the possibility of offering server rentals for developers of iPhone and Mac applications.
Although these discussions have occurred over the past few years, there is currently no operational service available, yet there remains the possibility that one could emerge in the future. Company executives imagined deploying Apple’s own chips in servers, enhancing their capability to handle AI tasks for clients. Advocates of the idea believe that due to the efficiency of Apple’s chips, developers could potentially save money compared to current cloud service offerings. The discussions were primarily led by Michael Abbott, a cloud executive, whose departure from Apple in 2023 did not completely halt the conversations.
Although it is unclear whether internal discussions continued beyond the first half of 2024, there are signs that dialogue may have persisted at a lower profile. Earlier reports regarding Apple’s ambitions in the cloud space surfaced under the codename “Project ACDC,” which focuses on developing Apple Silicon tailored for server farms, particularly for AI processing. This has led to the introduction of Private Cloud Compute, utilizing Mac chips within Apple data centers. Teams like Siri have benefited from improved processing capabilities, an initiative that has been described as an exclusive version of Amazon Web Services.
While it remains uncertain if Apple will ultimately proceed with this cloud service for app developers, the potential for profitability is significant. Currently, Apple incurs approximately $7 billion annually for cloud services with Amazon and Google, mainly for AI training. By establishing its own infrastructure, Apple would save money in the long run. With the potential revenues mirrored by Google Cloud, which constitutes 12% of Alphabet’s revenue, Apple could capitalize on the growing demand in the cloud services market.
However, this ambitious endeavor necessitates substantial investment in building the requisite infrastructure.
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