Apple Reportedly Taps Nvidia For M8 Ultra AI Servers In Enterprise Comeback Push

Apple is reportedly developing enterprise AI servers powered by its own chips, with two configurations under consideration and a potential launch in 2029.

• According to a report by The Information, Apple has considered Nvidia’s NVLink Fusion technology to connect its processors.
• It added that the servers are being designed for AI developers, businesses and governments.
• Apple’s existing connectivity technology is reportedly viewed as too slow and expensive for larger deployments.

Apple (AAPL) is reportedly developing enterprise AI servers powered by its own chips that could use Nvidia (NVDA) networking technology, marking a potential expansion into AI infrastructure and a further thaw in relations between the two longtime tech rivals.

According to a report by The Information, Apple is considering two versions of the server, including a smaller configuration with two of its planned M8 Ultra chips and a larger version with four. 

The report added that the company has also considered using Nvidia’s NVLink Fusion technology to connect the chips, although the project could still be canceled or move forward without Nvidia’s technology.

The servers are being developed for AI developers, businesses and governments and are not currently expected to launch until 2029.

AAPL stock edged 0.5% higher in morning trade, while NVDA stock gained as much as 1.3%. On Stocktwits, retail sentiment around Apple slipped to ‘neutral’ from ‘bullish’ territory over the past day, while sentiment around Nvidia continued to trend in the ‘bearish’ zone.

Apple Eyes AI Infrastructure Opportunity

Apple already builds servers for Private Cloud Compute, which handles AI workloads that are too demanding to run directly on iPhones and Macs. However, sources told The Information that the company’s internally developed connectivity technology is considered too slow and expensive for larger-scale deployments.

That’s where Nvidia comes in. The AI bellwether’s NVLink Fusion is a suite of switches, chiplets and software designed to let different processors communicate quickly inside data centers.

Amazon’s (AMZN) cloud division said last month that it would expand its use of NVLink Fusion for next-generation AI servers. For Nvidia, an Apple partnership could provide another major customer for its networking business even as Apple develops chips that could compete with Nvidia’s AI processors.

Apple’s Return To Enterprise Servers

The potential server project follows a sharp increase in demand for Apple’s high-performance Macs among AI developers. Mac was Apple’s fastest-growing product segment in its latest reported quarter, with sales rising nearly 29% to $10.4 billion. 

The company also held a June event called “Business at the Park,” where it hosted large corporations and AI companies to showcase its hardware for AI workloads.

A return to enterprise servers would mark a significant shift for Apple, which previously sold its Xserve server line from 2002 to 2011. The product ultimately failed to gain traction.

Nvidia Relationship Shows Signs Of Thawing

The potential server partnership would also represent a notable change in the relationship between Apple and Nvidia, which has been strained for years. Apple used Nvidia graphics processors in its Macs beginning in 2001, but tensions later emerged over business disputes involving Nvidia technology. 

According to the report, Apple is already using Nvidia chips in data centers operated by Google as part of its revamped Siri effort. The companies have also reportedly discussed Nvidia’s AI technology and other ways Nvidia could help Apple close AI gaps. 

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