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Thank the dead Apple Car for Apple’s upcoming AI-enhanced M7 chips

Apple is accelerating development of its M7 chips with enhanced AI capabilities, thanks to technology originally created for the now-canceled Apple Car project. The M7 series, expected from 2027 to 2028, will build on the Neural Engine introduced in 2017 to enable faster, more private on-device AI processing.

read2 min views1 publishedJul 13, 2026

Bloomberg’s Mark Gurman previously reported in June that while Apple plans to release the M6 chip in the entry-level MacBook Pro this fall, it’s going to skip the Pro and Max versions to focus on getting the M7 series out quicker. In the most recent edition of the Power On newsletter, Gurman expands on his report, adding that the M7 should arrive in the first half of 2027, followed by the M7 Pro and M7 Max at the end of 2027 and an M7 Ultra in 2028.

The reason for the change: AI, of course. But there’s a surprising twist: It all goes back to the failed Apple Car project.

In his June report, Gurman reported that the M7 will feature enhancements to the on-device AI processing capabilities. In his new report, Gurman details that Apple is able to move so adeptly with its AI hardware development because of the Apple Car project. In its attempts to build a self-driving car, Apple created components to handle the vehicle’s AI processing. While the Apple Car project died, those AI components became the foundation for Apple’s AI hardware.

“Without that push,” Gurman reported, “Apple would probably be even further behind in AI than it is today.”

The most recognizable development as a result of the Apple Car development is the Neural Engine in Apple silicon. It was introduced in the A11 Bionic chips used in the iPhone X in 2017–back then, Apple preferred the term “machine learning” instead of AI, but it’s all the same. The Neural Engine has since become a key part of Apple’s A-, S-, and M-series chips.

With the dominance of AI in tech, the Neural Engine is now the focal point of Apple’s chip development–it’s the key to Apple’s ability to perform on-device AI processing, a feature Apple believes is a differentiator between itself and its competitors. Compared to the cloud processing needed by other AI services, on-device AI processing offers faster performance, better security and privacy, and offline functionality.

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