Apple reportedly considered a major shift in strategy by exploring the idea of offering cloud services directly to app developers. This move could place the tech giant in direct competition with established players like Amazon Web Services, Google Cloud, and Microsoft Azure.
Internal Discussions and Strategy
Over the past few years, Apple executives, led by then cloud chief Michael Abbott, held internal talks about building cloud infrastructure tailored for developers of iOS and macOS apps. These services would rely on Apple’s proprietary chips to handle tasks such as off-device processing and AI workloads more efficiently. Apple’s silicon is known for energy efficiency and performance, which could offer developers a cost-saving alternative to traditional cloud platforms.
Private Cloud Compute and Project ACDC
One key part of the strategy included “Project ACDC” — short for Apple Chips in Data Centers. This secretive initiative focused on integrating Apple Silicon into server environments, first tested by the Siri team and later expanded to Photos and Apple Music. The company also introduced “Private Cloud Compute” to process AI tasks in-house, enhancing privacy and performance.
A Costly But Promising Venture
Though Apple hasn’t officially launched such a service yet, building its own cloud infrastructure could help reduce its dependence on third-party providers. The company currently spends about $7 billion annually on cloud services from Amazon and Google, mainly for AI training. A shift to internal servers could cut those costs and open a new revenue stream.
Still a Possibility
While the idea hasn’t materialized into a commercial offering yet, the potential remains. Google’s cloud business alone generates over $43 billion in annual revenue. If Apple chooses to enter this market, its AI-optimized hardware and existing developer ecosystem could offer a compelling alternative in the cloud computing space.
