Apple Weighs M8 Ultra AI Servers for 2029 With Nvidia Inside

Apple is developing enterprise servers built around future M8 Ultra processors, with a possible 2029 launch aimed primarily at AI inference, The Information reported on September 16.

The more surprising detail concerns the plumbing. Designs under consideration use either two or four M8 Ultra chips, and Apple has also considered Nvidia's NVLink Fusion technology to connect those processors, according to the report. Neither the server nor Nvidia's involvement is finalized. The project could still change or disappear entirely.

Yet the architecture under discussion signals a shift in AI hardware economics — one where Nvidia gets paid even when the compute is not Nvidia's.

A second line of defense

NVLink originally helped Nvidia GPUs communicate at high speed inside increasingly large AI systems. NVLink Fusion extends that strategy to custom CPUs and accelerators made by other companies.

For Nvidia, that creates a second layer of protection around its AI franchise. Apple could theoretically compete with Nvidia compute using its own processors while still buying Nvidia switches, connectivity chiplets and software.

The revenue pool is not trivial. The Information reported that networking equipment can represent 10% to 15% of AI data-center hardware costs, giving Nvidia a meaningful business beyond GPUs.

The bearish interpretation matters just as much. If more customers build capable proprietary accelerators, Nvidia may capture networking revenue while losing higher-value compute sales. NVLink Fusion is partly a way to monetize an increasingly heterogeneous market.

Apple's return to a business it left

Apple gains something different from the deal structure. Its M-series chips already combine performance with relatively efficient power consumption, and selling complete servers would let Apple pursue AI developers, governments and businesses that want local inference.

The timing cuts both ways. A 2029 target leaves years for competitors to improve, and Apple would be re-entering a server business it abandoned when Xserve disappeared in 2011.

Funds stayed bullish on both names

Institutional positioning reflects continued conviction in both companies. Insider Monkey tracked 169 hedge funds holding Apple in Q2, versus 170 in Q1. Arrowstreet Capital increased its Apple position 54% to roughly 29.9 million shares.

Nvidia moved in the opposite direction on holder count, rising to 285 hedge-fund holders from 275. Arrowstreet increased its NVDA stake 10% to about 34.7 million shares.

Apple's August 31 short interest stood near 139.7 million shares, roughly 1% of float and 3.5 days of trading volume — a level that signals little sustained bearish positioning.

If the M8 Ultra server plan survives to launch, 2029 could test whether Apple can monetize inference hardware at scale — and whether Nvidia's connectivity business can offset any compute share it cedes along the way.