Apple Reportedly Developing AI Servers, in Talks With Nvidia for Key Technology

Apple is developing an enterprise-grade artificial intelligence server using its own silicon, with a target launch date of 2029, according to a Wednesday report from The Information. The technology giant has also reportedly held discussions with Nvidia to use its high-speed interconnect platform to link the custom chips together.

Project Details and Nvidia's Role

The server project, which The Information notes could still be canceled, is planned to use Apple's unannounced M8 Ultra chips. According to the report, the servers would be offered in two configurations—one with two M8 Ultra chips and another with four—targeting AI developers, businesses, and government clients.

To connect these processors, some Apple engineers reportedly believe Nvidia's NVLink Fusion platform is the best solution available. This technology, which includes switches and software, allows chips from different manufacturers to communicate at very high speeds. Neither Apple nor Nvidia has publicly confirmed the discussions.

Market Impact and Rationale

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For Nvidia, which currently dominates the AI hardware market, a deal with Apple would represent a significant win. It would add a major new customer for its networking and interconnect products, which already account for roughly a fifth of its data-center revenue, and would validate its strategy of monetizing this technology as rivals develop competing AI chips.

The initiative is reportedly driven by a surge in demand from AI developers for Apple's existing high-end consumer hardware. According to The Information, Apple's Mac segment was its fastest-growing product line in the most recent quarter, with revenue jumping nearly 29% to $10.4 billion. This growth, fueled by developers purchasing Mac Studio and Mac mini units for AI work, has reportedly caused supply shortages and highlighted the need for dedicated enterprise-level hardware.

Context and Leadership

The server project began roughly a year ago and has the backing of new Apple CEO John Ternus, who supported it while leading the company's hardware engineering division, people familiar with the matter told The Information. His continued support is seen as a key factor behind the project's current momentum.