While other big tech companies invested heavily in AI data centers, Apple (AAPL) chose to sit on the sidelines and avoid a surge in capital spending. But that seems to have changed, and Apple realized it needed to get in on theAI data center game.
Apple is ordering about $1 billion worth of Nvidia (NVDA) GB300 NVL72 systems, Loop Capital analyst Ananda Baruah said late Monday. That equates to about 250 servers, each worth $3.7 million to $4 million, he said in a client note. Apple is working with server makers Dell Technologies (DELL) and Super Micro Computer (SMCI) to develop large server clusters to support generative AI applications.
“AAPL is officially in the large server cluster GenAI game… and SMCI and DELL are the primary server partners,” he said. “While we are still gathering more complete information, it seems likely that this is a Gen AI LLM (large language model) cluster.”
Barua believes that Apple’s change of strategy is due to the trouble it has encountered in bringing its AI-powered Siri digital assistant to market. Apple has delayed the release of the new Siri indefinitely. The company had hoped to launch the AI features earlier this year, after previewing them at the Worldwide Developers Conference last June. Apple has reportedly reorganized its executive team to deal with the company’s difficulties in releasing AI features. According to Bloomberg, an executive called the delays and missteps “unpleasant” and “embarrassing” because the company has been promoting the AI features in TV ads.