Apple's $10B NVIDIA GPU Purchase Unlikely to Boost AI Capabilities Soon
1min read Apple Inc. is reportedly planning to invest approximately $10 billion in NVIDIA Corporation's GB300 NVL72 product. However, renowned analyst Ming-Chi Kuo from TF International Securities has stated that this acquisition will not significantly enhance Apple's AI capabilities in the short term. Kuo's assessment is based on the relatively small scale of the order, which involves around 250 racks or 18,000 GPUs. This is in stark contrast to meta platforms, which is expected to purchase 1.3 million GPUs by 2025. Kuo's analysis suggests that while the acquisition may have some strategic value, it is unlikely to provide apple with a competitive edge in AI technology within the near future. The limited scope of the purchase indicates that Apple's AI ambitions may not be as immediately impactful as some market speculations have suggested.
Kuo pointed out that the order size is "too small" and compared it to Meta Platforms' recent moves. Meta is expected to purchase 1.3 million GPUs by 2025, which is approximately 70 times the scale of the rumored Apple purchase. Kuo also noted that Meta is focused on developing large language models for AI servers, aiming to reduce operational costs and improve service efficiency. In contrast, Apple may be lacking in this area.
Kuo explained further, "Moreover, the GB300 NVL72 is not expected to begin mass production until the first half of 2026. Apple's suppliers, Dell and AMD, are not top-tier assemblers like Foxconn or Pegatron. Therefore, Apple may not receive the server racks until the second or third quarter of 2026, or even later. Clearly, this deal will not provide Apple with an AI advantage in the short term, and it is certain that it will not do so within the next 12 months."
Both Apple and NVIDIA have not immediately responded to requests for comment. The analyst's insights highlight the strategic considerations and timelines involved in Apple's potential acquisition of NVIDIA's GPU technology. While the deal could have long-term implications for Apple's AI capabilities, it is unlikely to yield immediate benefits. The analysis underscores the importance of scale and strategic focus in the competitive landscape of AI technology development.
