Apple’s self-driving car initiative may have faltered, but it paved the way for advanced AI chip technology.

Apple’s self-driving car initiative may not have taken off, but it played a crucial role in shaping the company’s powerful AI chips. During the early stages of developing its autonomous vehicle platform, Apple recognized the need for robust on-device AI processing. Although the car processor was never completed, it ultimately led to the creation of the Neural Engine, which serves as the foundation for Apple’s on-device AI capabilities.

The Neural Engine first appeared in the iPhone X alongside the A11 Bionic chip. Initially, it focused on computer vision tasks, enabling features like FaceID, Animoji, and augmented reality. By pioneering on-device AI processing, Apple positioned itself as a frontrunner in the field, extending the Neural Engine’s capabilities to its desktop M-series chips. While Apple’s AI software may not have kept pace with competitors, its hardware has consistently impressed, allowing the company to emphasize its privacy features by minimizing cloud data transmission.

Looking ahead, Apple is making its AI hardware a central element of its strategy. Reports indicate that the company is bypassing the Pro, Max, and Ultra iterations of its forthcoming M6 chip to fast-track the development of the M7. This new chip is expected to launch in the first half of 2027, featuring significant upgrades to the Neural Engine. Additionally, the M7 Ultra is anticipated to support a new server product from Apple, with capabilities for up to 1.5TB of RAM.