Apple is now reportedly investing $1 billion to acquire Nvidia’s high-performance servers. This move has shocked as it contradicts its stance on using Apple Silicon for AI server infrastructure. According to Loop Capital analyst Ananda Baruah, Apple is purchasing 250 Nvidia NVL71 servers, with each unit costing between $3.7 million and $4 million.
Apple Expands AI Capabilities With NVIDIA Servers
This development comes despite Apple’s repeated statements that its AI ecosystem, ‘Apple intelligence’, is powered by its own Silicon processors. As recently as September 2024, Apple’s Senior Vice President of Software Engineering, Craig Federighi, clarified Apple’s decision to rely on Apple Silicon for its AI servers to safeguard user privacy.
“AAPL is officially in the large server cluster Gen AI game and SMCI [Super Micro Computer] & Dell are the key server partners,” Federighi noted at the time. “While we are still gathering fuller context, this appears to have the potential to be a Gen AI LLM (large language model) cluster.”
Yet Baruah’s note to investors, as cited by Investor’s Business Daily, suggests Apple is expanding its server cluster for generative AI by collaborating with partners such as Super Micro Computer (SMCI) and Dell. Nvidia’s NVL72 servers are expected to power large language models (LLMs) in order to enhance Apple’s AI performance.
Interestingly, these servers are not yet publicly available, even after Nvidia stated they will launch on March 18, 2025. While it is possible Apple is pre-ordering the servers for developmental use, the amount of this investment raises questions about Apple’s future AI strategy.
Source: https://appleinsider.com/articles/25/03/25/apple-is-reportedly-investing-heavily-into-nvidia-servers-for-ai-development
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