- Apple has integrated NVIDIA‘s AI accelerators into its Private Cloud Compute infrastructure to power Apple Intelligence features.
- The move marks a significant shift after a decade-long corporate rivalry stemming from prior Mac hardware failures and licensing disputes.
- Despite major AI announcements, AAPL stock has declined during its Worldwide Developers Conference as investors awaited a firm Siri AI release date.
At the ongoing Worldwide Developers Conference, Apple has drawn closer to Nvidia by partnering to power its Apple Intelligence features. This pivotal shift ends over a decade of limited business ties between the two technology giants.
Consequently, Apple’s Private Cloud Compute is expanding beyond its own data centers for the first time. Some workloads will now be serviced via Google Cloud servers that utilize Nvidia‘s GPUs.
In a blog post, Nvidia stated its GPUs with “Confidential Computing” are handling server-side inference for Apple Foundation Models. This technology provides a hardware-based security layer for AI workloads.
However, this renewed partnership follows a long period of corporate rivalry. Apple shifted to AMD’s graphics chips around 2015 after encountering reliability issues with some Nvidia GPUs, alongside broader disagreements over product design, technology roadmaps, and licensing.
Analyst Patrick Moorhead wrote on X, “Nvidia won that standoff for sure.” He viewed the development as a clear demonstration of Nvidia’s value in the AI era.
Meanwhile, Apple shares declined during WWDC as investors reacted to the news. The stock fell 3.6% on Tuesday, partly because the company did not announce a firm release date for its revamped Siri AI assistant.
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