Apple is reportedly preparing to invest up to $1 billion in high-end AI servers made by NVIDIA, aiming to strengthen its capabilities in generative artificial intelligence. According to a report by Ananda Baruah, an analyst from Loop Capital, Apple has already placed orders for around 250 NVIDIA GB300 NVL72 servers. Each of these servers costs between $3.7 million and $4 million.
This investment is part of Apple’s larger plan to build a strong foundation for its future AI tools. Two major hardware partners, Dell Technologies and Super Micro Computer, are expected to help support this infrastructure.
Apple Enters the Race for Generative AI Power
Baruah stated that “Apple is officially in the large server cluster Gen AI game,” suggesting that Apple might be working on a Large Language Model (LLM) cluster. This would support future AI features across Apple products. This move could mark a turning point for Apple, especially after facing difficulties improving Siri, which has fallen behind competing voice assistants.
The timing of this news is important, as the tech industry is moving fast toward generative AI. Big names like Google, Microsoft, and Meta have already made huge investments in AI tools and servers. Apple’s investment shows a clear effort to catch up and become a key player in this space.
Apple’s Internal Chip Delays?
Apple has been working on developing its own chip for servers, but reports suggest that progress has been slower than expected. The purchase of powerful NVIDIA servers may serve as a temporary or supporting measure, giving Apple time until its custom chips are ready. There’s also the chance that Apple has chosen to mix its in-house tech with outside help during the early stages of AI development.
Even though Apple has usually preferred to keep full control over its hardware and software, this major deal with NVIDIA and other partners shows a strategic shift. Apple seems open to working with others to build the core of its future AI systems.