- Craig Federighi confirmed Apple's FM Cloud Pro runs on Nvidia GPUs inside Google Cloud, abandoning private infrastructure for its most demanding AI workloads.
- Apple is using Nvidia GPUs in the context of Google Cloud to run the Frontier model, representing a significant shift in its operations.
- Apple's M-series private cloud ran for two years but couldn't sustain agentic AI at scale, forcing the outsourcing decision.
- Apple had its private cloud up and running for two years but reported difficulties in scaling the agentic experience.
- Apple reported Q2 FY26 revenue of $111.184 billion and diluted EPS of $2.01, marking its eighth consecutive EPS beat.
- Nvidia's data center revenue hit $75.25 billion, up 92% year over year, reinforcing its position in the market.
- In the first quarter, Google Cloud revenue grew 63% to $20.03 billion, with backlog nearly doubling to over $460 billion.
Apple's transition to Google Cloud marks a significant shift in its artificial intelligence strategy, as the tech giant struggles to manage its demanding AI workloads using its own infrastructure.123568
After operating its M-series private cloud for two years, Apple found it couldn't maintain the necessary scale for its agentic AI applications, which prompted the decision to adopt Nvidia GPUs via Google Cloud instead.4
According to Craig Federighi, Apple's senior vice president, this move allows the company to run intricate models that require substantial computational power. The decision comes in light of Apple's Q2 FY26 revenue of $111.184 billion, coupled with a notable 92% increase year-over-year in data center revenue, which hit $75.25 billion. Furthermore, Google Cloud has seen impressive growth as well, with revenue increasing 63% to reach $20.03 billion in Q1, indicating a promising outlook for this collaboration.7
While Apple's private setup experienced challenges, the adoption of Nvidia's infrastructure could facilitate the desired expansion and improvement in its AI capabilities, positioning it for future innovation and competitiveness in the AI landscape.
“Apple has decided to leverage Nvidia GPUs in Google Cloud for running its advanced AI model, signaling a significant infrastructure shift. This move comes after challenges faced with its private cloud, underscoring the need for scalable solutions.”
Yahoo Finance
