Apple’s latest AI initiative, “Apple Intelligence,” has unveiled its reliance on Google’s customized Tensor Processing Units (TPUs) for training its AI models. This strategic move indicates a large-scale procurement of AI servers from Google, with Quanta Computer and Inventec positioned as primary beneficiaries.
Industry analysts highlight Apple’s aggressive entry into AI applications, leveraging both NVIDIA and Google’s AI processors. Apple’s substantial investment in AI servers equipped with Google’s TPUs aims to bolster its AI capabilities significantly.
Despite Apple’s 47-page technical document omitting explicit references to Google and NVIDIA, it specifies that the Apple Fundamental Model (AFM) and AFM server are trained on a “cloud TPU cluster.” Given that Google is the sole provider of such services, it’s evident Apple rents Google’s servers for its AI training, thereby unveiling its AI server supply chain.
Unlike NVIDIA, which sells its chips and systems separately, Google channels its TPU capabilities through the Google Cloud Platform. Customers, including Apple, must utilize Google’s platform for TPU-based software development.
Quanta, Google’s principal server manufacturer, stands to gain substantially from Apple’s extensive AI server purchases. Quanta’s longstanding partnership with Google since 2016, including the development of the first AI server, positions it as a critical player in Apple’s AI expansion. Consequently, Quanta’s AI server shipments are anticipated to surge in the latter half of the year.
Inventec, having partnered with American cloud service provider ZT to supply motherboards to major CSPs including Google, is also poised to benefit. The burgeoning AI orders have pushed ZT’s New Jersey factory to near-full capacity, necessitating additional support from Inventec, which is experiencing a significant uptick in order transfers.
In summary, Apple’s collaboration with Google for AI server infrastructure, with Quanta and Inventec as key suppliers, marks a significant advancement in its AI strategy, promising substantial operational benefits for these manufacturers.
