Though Apple’s self-driving car program never materialized, it catalyzed the development of advanced AI chips that power the company’s devices and reinforce its commitment to on-device privacy.
- Car chip development led to Apple's Neural Engine for AI tasks
- Neural Engine debuted with iPhone X, powering FaceID and AR
- M7 chip with enhanced AI features expected in early 2027
What happened
Apple’s ambition to create a self-driving car required powerful on-device AI processing capabilities. However, the project was ultimately abandoned before the car processor was completed. Despite this, the research and development invested in the vehicle’s AI needs directly contributed to the design of the Neural Engine, a specialized AI processing unit introduced in the A11 Bionic chip powering the iPhone X.
The Neural Engine initially enabled features like FaceID, Animoji, and augmented reality on Apple devices, marking the company’s first significant foray into dedicated AI hardware. This technology has since evolved and expanded beyond mobile devices to become integral to Apple’s M-series chips for desktops and laptops.
Why it matters
The creation of the Neural Engine positioned Apple as an early hardware leader in AI, differentiating its products by enabling efficient on-device machine learning rather than relying heavily on cloud processing. This approach not only improves performance but also bolsters user privacy by minimizing the amount of personal data sent to external servers.
While Apple's AI software platforms have trailed other industry leaders, its hardware advancements have become a strategic cornerstone. The ability to process AI workloads internally supports Apple’s privacy commitments and enhances the functionality of its devices, influencing the broader competitive landscape in AI chip development.
What to watch next
Apple is shifting focus to the development of its M7 chip, expected to launch in the first half of 2027. This new generation promises substantial upgrades to the Neural Engine, further accelerating the performance and efficiency of AI operations across Apple’s product lineup.
Additionally, the anticipated M7 Ultra variant is expected to power a new server product supporting up to 1.5TB of RAM, signaling Apple’s expansion into AI-optimized server hardware. This move could have significant implications for enterprise AI computing and cloud infrastructure.