Apple to Partner with Foxconn for AI, Leveraging Dedicated Servers Apple has reportedly inked an exclusive agreement with Foxconn to utilize dedicated servers for the training and testing of artificial intelligence (AI) services. The servers are set to be manufactured in Vietnam as part of Apple's strategic move to diversify its supply chain away from China. This collaboration between Apple and Foxconn, its primary supplier of data center servers, marks a significant step in Apple's ongoing exploration of AI technology.


According to sources, the new arrangement will see Foxconn exclusively supply Apple with specialized servers designed for the development of AI. These servers are to be produced in Vietnam, reflecting Apple’s conscious effort to diversify its supply chain and reduce its reliance on China. Notably, Foxconn’s reputation in this field is well-established, as the company currently provides servers to major tech entities like Amazon, OpenAI, and Nvidia for their AI applications.

This development comes on the heels of last month’s report by Bloomberg’s Mark Gurman, who revealed that Apple was delving into AI projects under the working title “Apple GPT”. While these efforts are said to rival OpenAI’s ChatGPT, Apple’s approach to AI remains somewhat enigmatic. There is no definitive product strategy for consumers, and while there may be a “significant” AI announcement slated for 2024, concrete plans appear to be lacking at this stage.

Analyst Ming-Chi Kuo has also weighed in on the matter, stating that Apple’s progress in generative AI technology lags significantly behind its competitors. Currently, there is no indication that Apple intends to launch any AI services in the coming year.

Despite these uncertainties, the importance of AI to Apple’s future is clear. During a recent earnings call, CEO Tim Cook emphasized that AI and machine learning are “core fundamental technologies integral to virtually every product” that Apple creates. Cook also confirmed that generative AI has been a research focus “for years” and is “absolutely critical” to the company.

The partnership with Foxconn and the establishment of dedicated servers in Vietnam highlight Apple’s continued investment and belief in the potential of AI.

While the current trajectory and immediate plans may remain somewhat ambiguous, this collaboration underscores the tech giant’s commitment to exploring, developing, and eventually integrating AI technology across its product ecosystem.

About the Author

News content on is produced by our editorial team and complements more in-depth editorials which you’ll find as part of our weekly publication. provides a comprehensive daily reading experience, offering a wide view of the consumer technology landscape to ensure you're always in the know. Check back every weekday for more.

Editorial Team | Masthead – AppleMagazine Digital Publication