In light of recent reports detailing Apple’s challenges with AI, especially concerning Siri, a new analyst insight suggests that the company is nearing a significant investment of $1 billion in NVIDIA’s AI server technology.
Apple is allegedly ordering numerous expensive NVIDIA AI servers
As reported by Patrick Seitz in Investor’s Business Daily:
Loop Capital analyst Ananda Baruah noted on Monday that Apple is in the midst of placing orders for approximately $1 billion worth of Nvidia GB300 NVL72 systems. This amounts to around 250 servers, each priced between $3.7 million and $4 million, according to a communication with clients.
Baruah mentioned that Apple is collaborating with server manufacturers Dell Technologies and Super Micro Computer to establish a substantial server cluster aimed at facilitating generative AI functionalities.
“AAPL is officially venturing into the large server cluster Gen AI domain… with SMCI & DELL as the primary server partners,” he stated. “While we are still in the process of gathering more details, this investment seems poised to create a Gen AI LLM (large language model) cluster.”
While the report contains a fair amount of speculation regarding the prospective applications of these new servers, the magnitude of the investment in NVIDIA’s GB300 NVL72s suggests a clear intent.
There have been prior reports asserting that Apple is working on its proprietary chip designed for server integration.
Nevertheless, it appears that advancements in that area may be proceeding slower than anticipated, or Apple may have concluded that it needs to augment its capabilities with NVIDIA’s servers.
Regardless, this reinforces Apple’s commitment to being well-prepared for sustained investments in AI in the years ahead.
What are your thoughts on Apple potentially committing such a substantial amount to NVIDIA AI servers? Share your views in the comments.
