Apple might be making a foray into the AI data center race. That's according to a new note from Loop after the tech giant's troubles rolling out those promised AI Siri features.

Ardur Dabosa has more on today's tech check on how this might move that narrative forward, D.

And by the way, Carl, this, if it expands into something bigger, would be bullish for NVIDIA.

But Apple's playbook, it's really been about being first, but about being right.

And so that has earned them a good amount of patience over the last few years,

as its mega-cap peers were full steam ahead on AI in terms of data centers, their own model building applications.

This latest Siri mess, though, it has made clear the cost of waiting. So this

new loop capital note says Apple is finally making a move in the data center race, a development

that could have implications for the AI race at large. Now, the report says Apple's starting relatively

small, spending about a billion dollars in invidia systems equivalent to about 250 servers capable of being a much larger LLM cluster.

But its entry means that there could be another trillion dollar player competing for the same high-end chips, energy and real estate,

potentially intensifying GPU shortages and raising AI infrastructure costs

at a time when Wall Street, by the way, is growing skeptical of all of this spend without

substantial return on investment.

Now, this could also signal a shift in Apple's strategy and how it approaches partnerships.

Until now, Apple is focused on on-device or edge AI, a move into data centers that would mean more

server-side AI processing suggesting it may be preparing to build its own large

language models rather than relying on third parties as it has so far like open

AI or Google maybe in the future now in short this would mark a shake-up in

competitive dynamics and AI

partnerships right across the industry. That said, guys, this is one report. Doesn't necessarily

signal that Apple is going to start shelling out tens of billions of dollars on data centers like

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