Apple developing an AI dedicated chip (AAPL)

Apple is creating a chip specifically aimed at handling artificial intelligence (AI) tasks in its mobile technology, according to Bloomberg citing a source familiar with the matter.

Known internally as the Apple Neural Engine, the chip will handle AI processes such as facial recognition and speech recognition. Apple will eventually integrate the chip into its hardware, such as iPhone and iPad devices, but it's still in development with no concrete release date. Apple’s new chip is another signifier of the company’s push into AI, which CEO Tim Cook previously stated will be dominant in the smartphones of the future.

Apple’s AI dedicated chip could help devices’ software in a number of ways:

Apple is playing catch-up to other companies that have already developed this type of AI chip technology. Qualcomm’s recently released Snapdragon 835 mobile processor allows devices to run ML-trained applications directly on the device. And Google has utilized its Tensor Processing Unit (TPU), which is a chip that has powered Google data centers' processes, such as search and image recognition, since 2015. These releases follow an overall increase in the number of deals as well as the amount invested in AI technology globally, according to CB Insights.

Advancements in a bevy of industries are helping intelligent digital voice assistants like Apple's Siri and Amazon's Alexa become more sophisticated and useful pieces of technology.

Advances in artificial intelligence (AI) are allowing them to accurately understand more information, while upgrades to mobile networks are facilitating quick transfers of data to robust clouds, enabling fast response times. In addition, the swell of internet connected devices like smart thermostats and speakers is giving voice assistants more utility in a connected consumer's life.

Increasingly sophisticated voice assistants and the growing potential use cases they can assist in are driving consumers to adopt them in greater droves — 65% of US smartphone owners were employing voice assistants in 2015, up significantly from 30% just two years prior.report

However, there are still numerous barriers that need to be overcome before this product platform will see mass adoption, as both technological challenges and societal hurdles persist.

Here are some key takeaways from the report:

They can find an opening in a consumer’s calendar to schedule an appointment, place an online order for tangible goods, and act as a hands-free facilitator for texting, among many, many other tasks.

In full, the report:

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Apple developing an AI dedicated chip (AAPL)

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