The purchase decision comes shortly after indefinitely postponing Apple Intelligence features for iOS & MacOS. In spite of existing plans to develop an in-house AI server chip with Broadcom (project “Baltra”), it appears Apple has decided that Nvidia’s upcoming GB300 NVL72 server clusters are essential to staying relevant.
While $NVDA only saw a modest volume spike on the news, $AAPL stock rallied by ~1%.
Sources & Excerpts
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Apple Joins AI Data Center Race After Siri Mess
"Loop Capital analyst Ananda Baruah late Monday said Apple is in the process of placing orders for about $1 billion in Nvidia (NVDA) GB300 NVL72 systems. That equates to about 250 servers at $3.7 million to $4 million each, he said in a client note.
Apple is working with server builders Dell Technologies (DELL) and Super Micro Computer (SMCI) on its large server cluster to support generative AI applications, Baruah said.
"AAPL is officially in the large server cluster Gen AI game … and SMCI & DELL are the key server partners," he said. "While we are still gathering fuller context, this appears to have the potential to be a Gen AI LLM (large language model) cluster.""