Apple’s canceled car project built its AI chip edge
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- Apple developed the Neural Engine during its self-driving car initiative, initially focusing on on-device AI processing for autonomous driving, though the car project was ultimately scrapped.
- Apple introduced the Neural Engine with the A11 Bionic chip in the iPhone X, where it powered Face ID, Animoji, and AR features, establishing early leadership in on-device AI.
- Apple is accelerating development of the M7 Ultra chip, expected in the first half of 2027, with significant Neural Engine upgrades and support for up to 1.5TB of RAM.
- Apple is skipping Pro, Max, and Ultra versions of the M6 chip to fast-track the M7, signaling a strategic shift toward more powerful AI hardware.
- Apple plans to use the M7 Ultra as the foundation for a new server product, expanding its AI hardware beyond consumer devices into enterprise infrastructure.
Why it matters: Apple’s pivot from a failed car project to dominant AI silicon gives it a hardware edge in on-device processing, enabling privacy-focused AI while reducing cloud dependency—this could reshape competitive dynamics as rivals rely more on cloud-based models. The 1.5TB RAM support indicates a serious push into high-performance computing, potentially opening new markets.
