Apple Explored Launching Amazon Web Services Competitor: Report

Apple has internally discussed launching a cloud computing service that would compete directly with Amazon Web Services (AWS), the dominant player in the industry, according to a new report from The Information (via MacRumors).

The report, authored by The Information’s Aaron Tilley, claims Apple was actively exploring the idea as recently as the first half of 2024. However, it remains unclear whether those talks have continued. One of the key advocates for the initiative within Apple, Michael Abbott — who oversaw much of Apple’s cloud infrastructure — left the company in 2023, potentially stalling momentum.

Apple’s proposed cloud service would reportedly allow developers to rent servers powered by the same M-series chips found in Macs to run cloud-based app features. This would represent a significant shift in the cloud market, as Apple’s custom silicon has repeatedly demonstrated leading power efficiency and high performance per watt — two crucial factors for server hardware where both performance and operating costs are key concerns.

Internally, some Apple executives reportedly believed that leveraging M-series chips would allow Apple to offer a more cost-effective solution than AWS and other competing cloud providers. In fact, Apple is already using M-series powered servers to support some of its own services, including Apple Music and Apple Wallet.

If Apple ever proceeds with such a project, it could potentially fall under the iCloud umbrella, further expanding Apple’s fast-growing services business. For now, though, the idea remains speculative — but it’s clear Apple is keeping its eye on one of Amazon’s most profitable ventures.