How Apple Developed an Nvidia Allergy

Apple has long avoided directly purchasing Nvidia's chips and is now developing its own AI server chip with Broadcom, aiming for production by 2026, The Information reported Tuesday, shedding broader light on why the two companies don't get along so well.

The relationship deteriorated after a 2001 meeting where Steve Jobs accused Nvidia of copying technology from Pixar, which he then controlled. Relations worsened in 2008 when Nvidia's faulty graphics chips forced Apple to extend MacBook warranties without full compensation.

Rather than buying Nvidia's dominant AI processors directly like its tech peers, the Information reports, Apple rents them through cloud providers while also using Google's custom chips for training large AI models. The company's new chip project, code-named Baltra, marks its most ambitious effort yet to reduce reliance on external AI processors, despite being one of the largest indirect users of Nvidia chips through cloud services.

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