Intel has approached Apple to consider investing in its chip-making operations, according to a report from Bloomberg on Wednesday. The talks are in early stages, and an agreement may not be reached, the sources said. Apple is among several companies Intel has approached for potential partnerships or investments, Bloomberg reported.
What does this mean for Intel’s chip business?
Once a tech giant, Intel has been overshadowed by Nvidia. The future of Intel’s foundry business — which former Intel CEO Pat Gelsinger sought to expand — and the future of Intel’s upcoming 14A production process, are in flux. However, finding new customers appears more plausible today than earlier this summer. Intel’s stock has surged, climbing 60% since early August.
In July, Intel CEO Lip-Bu Tan said the company would only proceed with 14A if customers made commitments to using it.
Meanwhile, Apple and Intel could explore other ways to collaborate, possibly involving Apple Intelligence.
Although the plan remains uncertain, the talks take place at an interesting time. Apple has taken pride in developing in-house chips for its latest devices, following its 2020 split from Intel. Bloomberg reported Apple is expected to continue relying on its own chips, which are manufactured by TSMC.
Separately on Thursday, Apple called for the dissolution of the European Union’s Digital Markets Act, arguing that compliance forced it to delay certain features.
Tech industry undergoes a great reshuffling as AI boom continues
Intel has received lifelines from its competitor Nvidia and the U.S. government in recent weeks. The Trump administration purchased a 10% stake in Intel on Aug. 25, an unusual move that may nevertheless provide the chipmaker with a needed injection of reallocated cash.
On Sept. 18, Nvidia announced it would invest $5 billion in Intel. The chipmaker also secured a $2 billion commitment from SoftBank, which is working with OpenAI on its Stargate data center buildout. The largest AI firms have also rushed to make deals with each other, with Nvidia partnering with OpenAI and OpenAI, in turn, tapping Oracle.
The massive amounts of money pouring into the generative AI industry have led to a reshuffling of alliances. Some say a bust may follow the boom.
Apple may release a small $599 MacBook next year with reduced resolution and brightness to tempt budget-conscious customers.