Apple Invests $10 Billion in NVIDIA for AI Push Amid Siri Struggles

Apple Inc. has made a significant strategic move by investing approximately $10 billion in NVIDIA Corporation's GB300 NVL72 systems. This investment marks a notable shift in Apple's approach, as the company has historically avoided the escalating capital expenditures associated with artificial intelligence data centers. The decision comes as Apple faces challenges with its AI-powered digital assistant, Siri, which has encountered obstacles in its market rollout.

This investment is part of Apple's broader effort to build large server clusters to support generative AI applications. According to an analyst, Apple is collaborating with server manufacturers Dell Technologies and Super Micro Computer to develop these clusters. The order is estimated to include around 250 servers, with each server priced between $3.7 million and $4 million.

The strategic shift is a response to the difficulties encountered with Siri's AI capabilities. The company has indefinitely postponed the release of the new Siri, which was initially showcased at the Worldwide Developers Conference in June last year with the expectation of a launch in early 2024. The delays and setbacks have led to adjustments within Apple's executive team, with one executive describing the situation as "ugly" and "embarrassing," given the company's previous marketing efforts highlighting Siri's AI capabilities.

The investment in NVIDIA's systems is a clear indication of Apple's commitment to advancing its AI capabilities. By partnering with leading server manufacturers and investing in high-performance computing infrastructure, Apple aims to catch up in the competitive landscape of AI-driven technologies. This move underscores the company's recognition of the importance of AI in its future product offerings and its determination to overcome the challenges faced by Siri.