Apple is increasing its investment in developing its own AI accelerators, aiming to reduce reliance on third-party manufacturers. This move is part of Apple’s ongoing efforts to build in-house hardware, and it intends to completely sever its relationship with Nvidia, a company that has never been a strong partner. Apple’s decision to take control of its own AI technology will have significant implications for both companies.
A History of Tension with Nvidia
Apple’s strained relationship with Nvidia dates back to the early 2000s, when Nvidia graphics cards were introduced into Apple’s Mac computers. Tensions became evident early on: during a meeting between Steve Jobs and a senior Nvidia executive, Jobs accused the company of using technology copied from Pixar, the animation studio he owned at the time. The Nvidia executive denied the accusation, but Jobs ignored him for the remainder of the meeting, according to reports from The Information.
Despite these tensions, Nvidia’s equipment has played a key role in powering many of Apple’s AI functions. However, Nvidia dominates the AI accelerator market, controlling an estimated 70% to 95% of it. The company has reached impressive heights, at one point surpassing Apple in market value. Despite this, Apple has never directly purchased Nvidia’s equipment. Instead, the company rents access to Nvidia’s accelerators through cloud operators like Amazon and Microsoft.
Apple’s Transition to In-House AI Accelerators
Apple’s push for independence from Nvidia mirrors its previous move in 2020 when the company introduced the M1 chip, its first processor designed in-house for Mac computers. This shift marked the end of Apple’s long partnership with Intel, a supplier that had powered Apple’s PCs for years. With plans to introduce its own AI accelerators by 2026, Apple is focused on diminishing its dependence on third-party hardware once again. The company has reportedly partnered with Broadcom to develop its AI accelerators, which are codenamed Baltra. These accelerators are expected to be manufactured by TSMC using N3P process technology, which will also debut in the iPhone 17 Pro, adds NIXsolutions.
Apple’s decision to cut ties with Nvidia has been brewing for years. Apple has faced challenges with Nvidia’s products, which were often seen as inefficient and prone to overheating, especially in laptops. In 2008, a faulty Nvidia graphics card issue, known as “Bumpgate,” led Apple to switch to AMD graphics cards. Apple also stopped supporting Nvidia drivers for macOS Mojave in 2019, further souring their relationship. Nvidia now claims that the hostility is one-sided, asserting that the company is open to cooperating with Apple if given the opportunity. Yet, Apple remains committed to its vision of AI independence. We’ll keep you updated as more integrations become available in the coming years.