Apple Intelligence
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Apple wants to tap Foxconn's talent to power its Apple Intelligence servers, even though the vendor may have reached its limit.
Apple is ramping up efforts to develop Apple Intelligence, its user-facing suite of artificial intelligence tools. Therefore, the company is looking to produce specialized servers to boost its computing power.
The company is currently in talks with Foxconn, its largest iPhone supplier. The Taiwanese supplier already provides a similar service to Nvidia.
Apple hopes to build its servers using Apple Silicon, which is already used on the user side of Apple Intelligence features in Macs and iPads. According to Nikkei Asia, the volume of Apple's servers will be relatively small compared to Nvidia.
Nvidia's GB200 system is currently the world's most powerful AI computing engine. This means that Apple will want to use Foxconn's resources to provide its own computing power.
However, Foxconn's relationship with Nvidia could potentially be the reason it cannot commit to Apple.
According to anonymous sources from Nikkei Asia, Foxconn is currently busy building server centers for Nvidia. Additionally, Apple’s relatively recent entry into the market will likely require additional support in the early stages, which could strain Foxconn’s already limited resources.
As a result, Apple has begun exploring other partnerships, including China’s Lenovo Group and its subsidiary LCFC, as well as smaller suppliers like Universal Scientific Industrial. Apple’s talks with Lenovo are believed to involve building servers outside of China.
Apple has begun rolling out Apple Intelligence features to compatible devices like the iPhone 15 Pro series, iPhone 16 series, and iPad and Mac M series. Apple Intelligence is currently limited to English (U.S.), but the company plans to expand its language catalog soon.
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