Amid concerns about how Apple will integrate artificial intelligence features into the iPhone and the company's lagging AI products compared to other tech giants, there are reports that Apple Inc. (NASDAQ: AAPL) is developing an in-house chip for running AI programs in data centers, seeking a competitive edge in the rapidly expanding market, internally codenamed ACDC.

Over the past decade, Apple has begun creating its own semiconductors for its flagship iPhone and other devices, aiming to reduce reliance on other chip developers like Intel (NASDAQ: INTC).

By using in-house semiconductors, the company can fine-tune its devices for better performance and battery life.

To date, Apple has created chips for its portable and desktop computer products.

Earlier this year, Apple apparently abandoned plans to build electric cars, instead focusing on the development of artificial intelligence.