Apple has made a surprising move by confirming that its advanced cloud AI technology runs on Nvidia's Blackwell GPUs hosted through Google Cloud. This revelation came during the WWDC event on June 8, when Apple acknowledged its reliance on Nvidia for its Apple Foundational Model Cloud Pro, an essential component for their AI capabilities.
In this unexpected partnership, three technology giants collaborate: Apple provides the software and user privacy infrastructure, Google offers solid cloud services, and Nvidia supplies the powerful hardware necessary for enhanced AI performance. A notable development is the upgraded Siri, set to launch in September 2026, which will be significantly more capable thanks to this collaboration.
Security and Privacy Considerations
The arrangement requires careful handling of sensitive user data. Apple chose Nvidia's confidential computing framework to ensure that user privacy is maintained without giving Google or Nvidia insights into user activities. This was crucial for Apple's privacy team, reflecting the company's commitment to user data security.
Interestingly, Apple is not directly purchasing Nvidia's hardware but accessing it via Google Cloud, which means the chips remain within Google's infrastructure. This setup positions Nvidia favorably within the AI chip market, as gaining Apple as a customer sends a strong message to other companies about Nvidia's capabilities.
On the flip side, this relationship poses challenges for Google. While it solidifies Google Cloud's role as a significant enterprise provider by having Apple on board, it also means Google is facilitating improvements to Siri, which competes with Google Assistant.
Despite this partnership, Apple is not abandoning its ambitions to develop proprietary silicon. The company is actively working on Project ACDC, an in-house chip aimed at reducing its reliance on external GPU suppliers. The expected rollout of these chips in late 2026 could provide Apple with more control over its cloud AI operations.
The current landscape reveals Apple's strategy of bridging a capability gap. By leveraging Nvidia's technology now, Apple aims to integrate its own silicon solutions in the future. However, any delays in Project ACDC could prolong Apple's dependency on Nvidia and Google, something that Cupertino would prefer to avoid.
This material is informational and should not be taken as financial advice.
