Apple announced at the Worldwide Developers Conference that it is expanding Private Cloud Compute (PCC), its cloud infrastructure for Apple Intelligence, to Google Cloud servers equipped with Nvidia GPUs. The expansion marks the first time Apple has extended PCC beyond its own data centers. Nvidia stated in a blog post on Tuesday that its GPUs with Confidential Computing technology are being used for confidential inference in Apple's PCC and are handling server-side inference for Apple Foundation Models. The partnership represents a significant shift in the relationship between Apple and Nvidia, which had limited business ties for more than a decade after Apple transitioned away from Nvidia GPUs in its Mac computers.
Nvidia GPUs Power Apple's Private Cloud Compute Expansion
Apple Intelligence workloads will now be serviced via Google Cloud, which uses Nvidia's AI accelerators. Until recently, PCC data centers used Apple's custom silicon. Nvidia's Confidential Computing technology provides a hardware-based security layer for AI workloads, protecting data during processing by isolating tasks in trusted execution environments and verifying system integrity before sensitive information is transmitted, according to the company. The technology is being used for confidential inference in Apple's PCC, with Nvidia GPUs handling server-side inference for Apple Foundation Models.
Apple Ended Nvidia GPU Partnership in 2015
Nvidia's GPUs were central to Mac computers in the 2000s. Apple moved away from them after what Apple said were a certain series of chips that caused Mac failures, disagreements over product design and control, licensing conflicts, and Apple's broader strategy of reducing dependence on outside chip suppliers. By 2015, Apple had transitioned to GPUs from Advanced Micro Devices. In 2020, Apple launched Apple Silicon, integrating its own GPU designs and eliminating dependence on third-party graphics vendors for most Macs. Unlike Microsoft, Amazon, Meta and Google, Apple has largely avoided becoming a major direct buyer of Nvidia's AI chips, instead relying on rented Nvidia GPU capacity through cloud providers and Google's TPUs for some AI training workloads.
Patrick Moorhead, founder of Moor Insights & Strategy, wrote on X: "Awwww, Apple and Nvidia are friends again. Nvidia won that standoff for sure. It's been a while since I remember Apple capitulating after a decade-or-so-long grudge. It just demonstrates the value and power and opportunity Nvidia holds with its tech."
Apple Shares Decline During WWDC
Apple's WWDC is currently underway and ends on Thursday. Apple shares declined 3.6% on Tuesday and nearly 2% the day before. Investors appeared unimpressed that Apple did not set a firm release date for Siri AI. Besides Siri AI, the iPhone maker has introduced iOS 27, macOS Golden Gate, new AI-powered photo and productivity features, and expanded child-safety controls across its ecosystem. On Stocktwits, the retail sentiment was 'bullish' for AAPL and 'bearish' for NVDA. Apple shares are up 7% year to date, and Nvidia shares are up 12% year to date.
FAQ
What did Apple announce about Private Cloud Compute at WWDC?
Apple announced at the Worldwide Developers Conference that it is expanding Private Cloud Compute beyond its own data centers to Google Cloud servers equipped with Nvidia GPUs. This marks the first time Apple has extended PCC infrastructure outside its own facilities.
Why did Apple stop using Nvidia GPUs in Mac computers?
Apple transitioned away from Nvidia GPUs by 2015 after what Apple said were a certain series of chips that caused Mac failures, disagreements over product design and control, licensing conflicts, and Apple's broader strategy of reducing dependence on outside chip suppliers. Apple launched Apple Silicon in 2020, integrating its own GPU designs.
How did Apple stock perform during WWDC?
Apple shares declined 3.6% on Tuesday and nearly 2% the day before during WWDC. Investors appeared unimpressed that Apple did not set a firm release date for Siri AI. Apple shares are up 7% year to date.
