Apple is upgrading its Private Cloud Compute infrastructure with M5 chips, according to code found in the latest iOS 26.4 beta. The new architecture, codenamed `J226C`, runs a version of iOS with an agentic architecture designed to handle AI requests more efficiently. This marks a significant shift from the M2 Ultra chips that have powered Apple's cloud infrastructure since 2023.

The move comes as Apple refines its cloud-based AI capabilities ahead of more advanced Siri features. The company recently partnered with Google to integrate Gemini models into its AI ecosystem, suggesting a hybrid approach to cloud computing. While there were earlier reports of M4 chip adoption, it appears Apple is skipping directly to the M5 generation for its server infrastructure.

Apple is also reportedly developing dedicated AI server chips, with mass production expected to begin in the second half of 2026. The company has already started manufacturing Private Cloud Compute servers at a Houston, Texas facility as part of its $600 billion domestic infrastructure investment. This infrastructure upgrade positions Apple to deliver more sophisticated AI features while maintaining its commitment to privacy and on-device processing.