​Apple (NASDAQ:AAPL) is teaming up with Broadcom (NASDAQ:AVGO) to develop its first-ever server chip designed specifically for AI. The chip, called Baltra, is expected to hit mass production by 2026 and will use Taiwan Semiconductor’s cutting-edge N3P process. This partnership is a strategic power move for Apple, as it aims to reduce reliance on Nvidia’s (NASDAQ:NVDA) expensive processors and boost its AI capabilities. Broadcom’s networking technology will also play a critical role in handling the intense computational demands of AI. This deal could transform Apple’s AI capabilities and position both companies to lead in the growing custom chip market. With Broadcom shares already up 60% in 2021, this partnership looks like a win-win for both companies. Investors are closely watching as Apple’s silicon team continues to make bold moves in the tech sector.