This project involves utilizing Apple's custom chips to rent out servers, capitalizing on the success of its silicon technology, which has significantly improved performance in devices and AI services.

Apple is exploring the possibility of entering the cloud services market for app developers, aiming to compete with established giants like Microsoft, Amazon, and Google.

Rather than employing a traditional sales force, Apple intends to leverage its existing developer relations team to manage this new cloud service.

The initiative aims to provide a more integrated experience for developers compared to current offerings by competitors, utilizing Apple's own infrastructure.

In 2024, Apple launched Private Cloud Compute, which utilizes its Mac chips for complex AI tasks that are unsuitable for individual devices.

Apple executives believe that their M-series chips could offer superior AI inference performance at lower costs, particularly for high-volume AI workloads.

The revenue potential for such a service is considerable, as evidenced by Google's Cloud revenue, which accounted for a significant portion of Alphabet's total revenue.

This cloud service initiative aligns with Apple's strategy to diversify its services revenue amidst regulatory pressures on its App Store fees and its search deal with Google.

If successfully launched, the cloud service could enhance Apple's services revenue, especially in light of ongoing legal challenges to its App Store business model.

The proposed service could potentially be branded under iCloud, contributing further to the growth of Apple's services revenue.

However, the future of this initiative remains uncertain following the departure of key cloud executive Michael Abbott in 2023, which raises questions about the project's direction.

Despite internal discussions about offering cloud services to developers over the last few years, a launched service has yet to materialize.