Apple is spending $1 billion on NVIDIA's AI servers: Report

Apple raised everyone’s hopes when it previewed Apple Intelligence at WWDC last year. The first set of Apple Intelligence features landed nearly five months ago. However, they weren’t on par with what rivals offered back then. As AI continues to be a real headache for Apple, a new report indicates that the company is in the process of buying NVIDIA’s AI servers worth $1 billion.

Apple has reportedly decided to buy NVIDIA’s AI servers worth $1 billion

On Wednesday, Investor’s Business Daily reported that Apple is now looking towards NVIDIA to up its AI efforts. The report mainly talks about what the Loop Capital analyst Ananda Baruah said in his notes to investors. According to Baruah, Apple is in the process of placing orders for about 250 NVIDIA GB300 NVL72 servers worth $1 billion.

Not to forget, this server is built with NVIDIA Blackwell Ultra and costs $3.7 million to $4 million each. In his note to investors, Baruah said that Apple is “officially in the large server cluster Gen AI game, and Super Micro Computer and Dell are the key server partners. While we are still gathering fuller context, this appears to have the potential to be a Gen AI LLM (large language model) cluster.”

It’s no secret that Siri’s AI upgrade has been a headache for the Cupertino giant. Baruah believes that this very fact has influenced the decision to buy new AI servers from NVIDIA.

Delays in AI features

The company initially hoped to launch all the AI features earlier this year, but we are still waiting. While some of the features are out, they are still not up to par. Apple had also announced that major AI features and AI-powered Siri would be available with iOS 18.4 in April. But that’s not happening anymore as the company has already announced a delay.

As the company struggles to push AI features on time, Bloomberg recently reported that Apple has shuffled its executive team. Robby Walker, senior director of the Siri team, even described delays in Siri’s AI upgrade as an “ugly” situation. Only time will tell if buying NVIDIA’s AI servers comes out as a beneficial decision for Apple.

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