Report: Apple wanted to build its own AWS competitor

Apple could soon enter a new market currently dominated by Amazon, Microsoft, and Google. According to a report by The Information, Apple is seriously considering offering its own cloud service for developers. The project, internally codenamed ACDC, would be based on its own chips and could become a viable alternative to AWS, Azure, or Google Cloud in the long term.

Cloud services are among the most lucrative business models for major tech companies. For Apple, this area has so far been a minor focus. Instead of renting computing power, the company focuses on devices, operating systems, and software services. But behind the scenes, it has apparently been considering changing this course for years. Apple could bring its own hardware power to data centers – with a service specifically designed for AI workloads and modern developer needs.

Project ACDC: Apple Chips in Data Centers

The internal project is called ACDC – which stands for "Apple Chips in Data Centers." The goal was to provide servers based on Apple Silicon that could be made available to developers. Three people familiar with the project said these servers would be comparable to existing offerings from AWS, Azure, or Google Cloud – only with Apple chips instead of Intel or AMD. The idea behind ACDC was to create a cloud infrastructure that was cheaper and more efficient than existing competitor offerings. Apple saw this primarily as an opportunity to commercially exploit its own chips beyond iPhones, iPads, and Macs.

Why Apple wants to go to the cloud

A key reason for Apple's cloud plans is the increased demand for AI infrastructure. According to internal assessments, Apple chips offer significant advantages, especially for so-called inference processes – the application of pre-trained AI models to new data. They are powerful yet energy-efficient, which has a direct impact on operating costs. Apple has been using its own chips in its data centers for some time now. One early example is "Private Cloud Compute," a system that processes server-side requests for Apple Intelligence. The Siri team was also an early adopter: For text-to-speech tasks, servers with Mac chips were tested there for the first time – with positive results in terms of performance, accuracy, and cost. Other Apple services such as Photos and Apple Music followed later, for example to improve the search function.

Internal service or public offering?

Interestingly, Apple apparently didn't intend to build a traditional cloud distribution like Amazon. Instead, the existing Developer Relations team would manage access. This would mean no typical B2B sales structure, but rather a cloud offering directly embedded in Apple's existing developer ecosystems. Simple, controlled, and at Apple's level. They even explored whether this infrastructure could be opened up to external developers—albeit without broad marketing, but rather as a complementary service for Apple-affiliated developers. This would be a significant difference from AWS or Azure, which focus on maximum scaling in the enterprise sector.

The current status: unclear

The report does not mention a final decision on the ACDC project. While internal discussions continued until the first half of 2024, the status has been uncertain since the departure of Michael Abbott—one of the leading minds behind the idea—in 2023. Whether Apple will continue with the project is currently unknown. Nevertheless, the discussion demonstrates Apple's strategic direction. App Store revenue is under regulatory pressure. At the same time, the multi-billion dollar standard search deal with Google is in the focus of the U.S. Department of Justice. New revenue streams in the services sector are therefore becoming increasingly important for Apple. A developer cloud based on Apple's own chips would fit well with its existing strategy.

This is how Apple could further exploit its chip strength

While it's currently unclear whether Apple will continue with the ACDC project, it's clear that the idea has been seriously considered. The combination of proprietary hardware, AI expertise, and developer focus provides a solid foundation for a potential entry into the cloud market. For developers, this could represent an interesting alternative to established offerings in the medium term—especially if Apple extends its accustomed level of integration and efficiency to cloud services. If Apple decides to launch ACDC or a similar service, it could have a lasting impact on the market. And it would be a logical next step in bringing Apple Silicon's technological edge into new business areas. (Image: Shutterstock / Tommy Lee Walker)