Apple explores return to server market with Nvidia tech

Apple ↗ 2.43% is developing an enterprise AI server powered by its in-house M8 Ultra chips and has held discussions with Nvidia ↘ 4.27% about incorporating the chipmaker's networking technology, according to a report published Wednesday by The Information. The move would mark Apple's return to the server market more than a decade after discontinuing its Xserve product line.appleinsider+1

The planned server would target AI developers, businesses, and governments, and is not expected to reach the market before 2029, The Information reported. The project could still be canceled, and neither company has publicly confirmed the talks.theinformation+1

Two Configurations Under Development

Apple is considering two server configurations: a smaller version pairing two M8 Ultra chips and a larger one with four, according to the report. To link the chips together, Apple has discussed adopting Nvidia's NVLink Fusion, a suite of switches, chiplets, and software designed to enable high-speed communication between processors from different vendors inside data centers.9to5mac+2

Some Apple engineers working on the project view NVLink Fusion as the strongest available connectivity option for the M8 Ultra chips, The Information reported. For Nvidia, which earns roughly a fifth of its data center revenue from networking equipment, an Apple deal would add a large-volume customer and reinforce its strategy of monetizing interconnect technology as rival chips enter the market.tradingpedia+1

Ternus Backing and Commercial Imperative

New Apple CEO John Ternus, who took the helm earlier this month, has supported the server initiative since its inception roughly a year ago when he led Apple's hardware engineering division, according to people familiar with the matter cited by The Information. His continued advocacy is seen as a key factor in sustaining internal momentum for the project.investing+1

The effort reflects growing demand for Apple hardware among AI developers. In Apple's most recently reported quarter, Mac was the company's fastest-growing product segment, with revenue climbing nearly 29% to $10.4 billion, fueled by demand from developers purchasing Mac mini and Mac Studio systems for AI workloads, The Information reported. That surge created supply shortages and highlighted the limitations of consumer-grade machines for enterprise-scale AI tasks.tradingpedia+1

A Return to Familiar Territory

Apple exited the server market when it discontinued the Xserve in 2011, though the company currently manufactures its own servers in Houston to support internal services. The reported project would represent a purpose-built rack-mounted solution aimed at external customers — a departure from the consumer hardware that AI developers have been repurposing for inference workloads. Apple has been working on the project for about a year, but plans have not been finalized.9to5mac+1