Apple's decision to not use Nvidia GPUs for AI model marks potential challenge for Nvidia

From Nasdaq: 2024-08-10 10:00:00

Nvidia’s stock (NVDA) has been a top performer in 2023 due to high demand for AI computing power. However, Apple (AAPL) chose not to use Nvidia GPUs for their AI model. Nvidia’s GPUs are popular for AI workloads, but purpose-built alternatives like Alphabet’s TPU may challenge their dominance.

GPU popularity stems from their ability to perform many parallel calculations, making them ideal for AI workloads. Despite this, purpose-built chips like Alphabet’s TPU offer superior performance for specific tasks. Apple’s choice of TPU over Nvidia’s GPU may signify a shift in AI model training methods.

Investor caution surrounds Nvidia’s extreme growth expectations, especially with the rise of purpose-built chips for AI model training. While Nvidia’s revenue projections are strong, the threat of companies using custom chips from tech giants like Alphabet, Amazon, and Microsoft could impact long-term demand for Nvidia’s GPUs.

Cloud giants like Amazon and Microsoft have developed purpose-built chips for AI training, posing a competitive threat to Nvidia’s GPU sales. Despite this, these companies still heavily use Nvidia’s GPUs in their data centers. The ongoing dominance of GPUs in AI model training remains uncertain amidst the rise of purpose-built alternatives.



Read more at Nasdaq: Apple Says No to Nvidia GPUs. Is This the End for Nvidia?