Nvidia (NVDA.US) fell more than 5% as its dominant position came under threat.

On Tuesday, shares of Nvidia (NVDA.US) erased early gains and fell more than 5% to $105.8. The news came after Apple Inc. released its first public preview of iPhone AI and then published a paper saying its AI model was trained on Google's TPU (tensor processing unit). The paper introduced the foundational language models developed to support Apple Intelligence features, including a 3 billion parameter model designed for efficient on-device running and a cloud-side large model based on private cloud computing.

The paper released by Apple said it trained its cloud-side AFM (Apple Foundation Model) on 8192 TPUs v4 chips, using a sequence length of 4096 and a batch size of 4096 tokens, for 6.3 trillion token training. The edge AFM was trained on 2048 TPUs v5p chips. Apple's decision suggests some large tech companies may be looking for alternatives to Nvidia's graphics processing units for AI training.