Apple is challenging Nvidia’s dominance in AI hardware by developing custom chips like Baltra to reduce dependence on external GPUs.
Apple has been making headlines in the tech world for its recently announced AI-based features, but there’s one player that Apple might want to stay out of the spotlight. It’s Nvidia. As the reigning king of GPU technology, Nvidia is essential to the AI revolution. Still, Apple seems to be quietly heading down a different path. Rather than following the industry trend of relying heavily on Nvidia, Apple is bringing to market or developing new alternatives to Nvidia, including its own AI server chips. Such measures actually reflect a combination of strategic ambition, financial restraint, and a longstanding rivalry dating back to the days of Steve Jobs.
A calculated move towards independence
Apple’s shift away from Nvidia is deliberate. While many technology companies rely on Nvidia’s GPUs, Apple primarily rents access to them through cloud providers like Amazon and Microsoft. Apple is also reportedly using its own chips designed by Google to train its largest AI model. This approach avoids over-reliance on a single supplier and emphasizes Apple’s desire for independence.
Experts say Apple’s decision was influenced by two factors: cost efficiency and control. By building in-house hardware, Apple will be able to more smoothly integrate AI solutions into its ecosystem while maintaining greater control over its technology stack.
20 years of rift
Tension between Apple and Nvidia is nothing new. Some industry insiders say the dispute dates back to the Steve Jobs era at least 20 years ago. The business impact of these conflicts is lingering, and Apple appears reluctant to deepen its relationship with Nvidia, despite Nvidia’s dominance in AI hardware.
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Apple is now taking its biggest step yet: producing a custom chip for its AI servers, known internally as “Baltra,” sometime in 2026. The idea behind this is to leverage the AI accelerator elements that Apple can undertake. In other words, Baltra with its new custom GPU is perfectly on its way to not only rescuing Apple from the Nvidia camp, but also making it viable against AI.
This is a point that Apple itself has made, and now is the time to lead the AI race, not follow. It remains to be seen whether it can actually match Nvidia, but the moves made by the Cupertino giant suggest that Nvidia is up for the challenge.
