Apple Inc. is considering using Nvidia Corp.'s NVLink Fusion networking technology in a planned AI inference server powered by its own chips, potentially marking the iPhone maker's return to the dedicated server market, The Information reported on Wednesday, citing people familiar with the matter.
Apple shares rose 1.08% to $334.93 in premarket trading after reversing earlier losses.
Apple is developing an enterprise AI server aimed at AI developers, businesses and governments, according to the report. The server could be offered in configurations featuring two or four of the company's planned M8 Ultra chips, described as its highest-performance processors.
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Apple last sold dedicated server hardware under its Xserve line, which it discontinued in 2011 as the company shifted its enterprise focus towards standard Mac hardware and consumer devices.
The company has discussed using Nvidia's NVLink Fusion technology to connect M8 chips in the planned AI server. The product is not expected to arrive before 2029 and could still be cancelled or launched without Nvidia's technology, The Information reported.
The potential tie-up comes against a backdrop of strained relations between the two companies stretching back nearly two decades.
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Apple previously ended its relationship with Nvidia following an alleged defect in Nvidia graphics chips that was linked to widespread MacBook failures.
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