Apple Taps Google and Nvidia to Power Next-Generation AI - MIT Sloan Management Review Middle East

At the 2024 Worldwide Developers Conference (WWDC) in Cupertino, Apple announced a strategic collaboration with Google and Nvidia to advance its next-generation AI capabilities. This marks the first p... Read original →

Apple’s reliance on Nvidia GPUs and partnership with Google reveals a critical gap in its in-house silicon for large-model training. This move reshapes the AI hardware stack: TSMC’s sub-3nm capacity may tilt further toward Nvidia, forcing Apple to reassess its Neural Engine roadmap. While privacy-centric design eases GDPR-style compliance, tightening U.S.-China data localization rules will inflate global private cloud CapEx. Google could exploit this collaboration to embed Gemini deeper into iOS, undermining Siri’s autonomy. Microsoft and Amazon will likely counter by pushing Azure/AWS AI services closer to end devices. If Apple fails to demonstrate efficient on-device inference for 70B+ models within 18 months, its 'cloud-edge synergy' narrative—and premium hardware pricing—will face investor skepticism.