Apple Accelerates In-House AI Chip Development, Plans to End Collaboration with Nvidia
In recent years, Apple Inc. has been continuously advancing its in-house chip development plan. Following the M1 chip, which ended its collaboration with Intel, Apple now targets the AI chip sector to reduce its reliance on Nvidia. Currently, Apple is partnering with Broadcom to design an AI server chip, expected to launch in 2026 under the codename Baltra, which could signify the complete end of Apple's relationship with Nvidia.
Reducing Dependence, Apple Advances AI Chip Development
Currently, many of Apple's AI features still rely on Nvidia technology, but they do not directly purchase its chips. Instead, they rent access through Amazon and Microsoft's cloud services. However, Apple is gradually moving away from this model. It is reported that Apple is collaborating with Broadcom to design an AI server chip to further decrease dependence on Nvidia. This chip will utilize TSMC's N3P manufacturing process and is expected to debut in 2026, potentially making its first appearance in the iPhone 17 Pro's processor.
Apple's move aims not only to improve device performance and energy efficiency but also to master core technologies through independent research and development, thus enhancing supply chain stability.
Apple and Nvidia's Tense Collaboration Over the Years
The tension between Apple and Nvidia dates back to the early 21st century when Apple began using Nvidia chips in Mac computers to enhance graphics performance. However, their collaboration was always fraught with conflicts. During Steve Jobs' era, Apple accused Nvidia of copying Pixar's technology, worsening their relationship.
Nvidia believed Apple's customization demands were too stringent, yet Apple failed to become a key Nvidia customer. Furthermore, Nvidia's chips did not meet Apple's high requirements for energy efficiency and heat management in laptops. Apple attempted multiple times to have Nvidia design custom chips for MacBooks, but Nvidia refused.
In 2008, a design flaw in Nvidia's graphic chips intensified the conflict, which became a significant opportunity for Apple to turn toward AMD and eventually push forward its plan for self-developed chips.
In 2019, Apple completely ceased collaboration with Nvidia on macOS Mojave drivers, bringing their relationship to a new low.
Nvidia's Market Dominance Faces Challenges
Despite Nvidia currently controlling 70% to 95% of the AI chip market share, with its market value once surpassing Apple's, the increased commitment of tech giants to develop in-house chips is challenging Nvidia's market position. Apple's in-house AI chip plan will undoubtedly further weaken Nvidia's market dominance.
Self-Developed Chips May Change Market Dynamics
Apple is expected to launch the Baltra chip in 2026, becoming a crucial support for the AI capabilities within its ecosystem, spanning a wide range of devices from iPhones to Macs. The introduction of in-house chips not only enhances the competitiveness of Apple devices but will also significantly impact the global AI chip market landscape.
With more technology companies pushing for self-developed chips, Nvidia will face increasingly fierce market competition. Apple's success may encourage other manufacturers to accelerate their self-development efforts.
The Intensifying Chip Race Among Tech Giants
Apple's accelerated AI chip development plan marks another milestone in its strategic layout. By further reducing dependence on Nvidia, Apple can better control its technological development direction and provide stronger support for its AI ecosystem. In the future, with the full implementation of in-house chips, the complex collaboration between Apple and Nvidia will come to an end.
