From Investor's Business Daily, March 25:
While other Big Tech firms invested heavily in artificial intelligence data centers, Apple (AAPL) stayed on the sidelines, choosing to avoid the capex spending surge. But that appears to have changed with Apple realizing it needed to join the AI data center game.
Loop Capital analyst Ananda Baruah late Monday said Apple is in the process of placing orders for about $1 billion in Nvidia (NVDA) GB300 NVL72 systems. That equates to about 250 servers at $3.7 million to $4 million each, he said in a client note.
Apple is working with server builders Dell Technologies (DELL) and Super Micro Computer (SMCI) on its large server cluster to support generative AI applications, Baruah said.
"AAPL is officially in the large server cluster Gen AI game … and SMCI & DELL are the key server partners," he said. "While we are still gathering fuller context, this appears to have the potential to be a Gen AI LLM (large language model) cluster."
Baruah believes Apple's strategy shift was compelled by troubles in bringing its AI-enabled Siri digital assistant to market....
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