Apple is set to boost security and privacy with the release of iOS 18 by powering its AI tools with in-house server chips. The code named project, ACDC, will allow Apple to offer powerful yet secure and private AI features using on-device and cloud approaches. This move was planned three years ago but has been accelerated to meet the iOS 18 timeline after recent AI launches like OpenAI’s ChatGPT.

The M4 chips unveiled by Apple at its recent iPad event include upgrades to the neural engine, enabling powerful AI features. This move to place Mac-grade chips in data centers has been seen as a strategic advantage for Apple in the AI arms race, according to the Wall Street Journal. Investors have responded positively to the news, with Apple’s stock enjoying a boost following Bloomberg’s report detailing the developments.

Apple’s AI strategy for iOS 18 and beyond involves on-device AI as its preferred approach, emphasizing privacy and security, which sets it apart from rival Google’s Android. Apple is reportedly working on developing its own large language model to power on-device generative AI features. The acquisition of AI start-up DarwinAI, which specializes in making AI systems smaller and faster, could benefit Apple’s on-device strategy.

Apple CEO Tim Cook has emphasized the advantages that Apple offers in terms of seamless hardware, software, and services integration that set it apart in the new era of AI. The company is exploring collaborations with Google and OpenAI to offer additional AI features powered by outside firms. The launch of iOS 18, set for this fall after its unveiling at the Worldwide Developers Conference in June, promises to bring powerful AI features such as Safari Web Eraser and enhancements to apps like Siri and Apple Music to users.

Overall, iOS 18 is shaping up to be a significant update for iPhone users, with powerful AI features and the security and privacy that Apple is known for. By leveraging its in-house server chips to power AI tools, Apple is setting itself up to deliver a cutting-edge user experience that prioritizes privacy and security. With the competition in the AI space intensifying, Apple’s strategic moves with iOS 18 and its AI capabilities are likely to have a significant impact on the smartphone industry.

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