[Apple Shock Wave] Jensen Huang's Strategy: Nvidia and Apple Collaboration?

Apple Likely to Unveil AI at WWDC on the 10th
Market Cap Returns to $3 Trillion Range
Expect Competition with Nvidia Benefiting from Computex and Stock Split
Jensen Huang: "Apple Is Doing Amazing Things"
Close Ties Between Taiwan, Apple, and Nvidia... AI Collaboration Possible After All

After the press conference held on the afternoon of June 4, the opening day of Computex 2024, Jensen Huang signed copies of the journalist's book "Apple Nvidia Shockwave" and also took commemorative photos.

The annual developer conference (WWDC), which will present Apple's artificial intelligence (AI) blueprint, will be held from the 10th to the 14th (local time). Meanwhile, the trajectory of AI prodigy Nvidia and Jensen Huang has somewhat concluded through 'Computex 2024.' It's truly peculiar, even when trying not to overthink it. Who would have thought that Apple and Nvidia would create big events just a week apart?

Now, public attention is focused on whether Apple can overturn the widespread perception that it has fallen behind in the AI field and succeed in a comeback. The competition between Apple and Nvidia for the $3 trillion market capitalization milestone is expected to intensify further.

But are Apple and Nvidia really competitors? Although they compete in market capitalization rankings, aren't the two companies growing through a complementary relationship based on collaboration?

◆ WWDC, Now It's Apple's AI Time

Apple's WWDC is an event for developers, but in recent years it has mainly focused on new Mac computers or new chip announcements. Last year's WWDC centered on the outstanding new product 'Vision Pro,' but this year the situation is completely different. The key point to watch at this WWDC is whether the iPhone will support on-device AI.

Before WWDC, Apple unexpectedly unveiled an iPad equipped with the 'M4' chip in May. This means there is no hardware to showcase at WWDC anymore. Now, what will be revealed at WWDC is software, specifically AI. Emphasis is placed on AI support at the operating system (OS) level and the possibility of alliances with AI companies. Consumers, developers, and Wall Street investors are all eagerly awaiting Apple's AI announcements.

Since Samsung Electronics and Google have teamed up to implement on-device AI features in the Galaxy S24 and taken the lead, the prevailing view is that Apple will announce collaboration with OpenAI. OpenAI has already announced ChatGPT 4o and revealed its use on the iPhone, signaling imminent cooperation with Apple. This is beneficial for both Apple and OpenAI. If ChatGPT is pre-installed as a default app on the iPhone, Apple will instantly secure ChatGPT as an ally, and OpenAI will gain access to over 2 billion iPhone users.

Wall Street is already calling this WWDC the most important event among the WWDCs held in the past decade. Apple's market capitalization soaring back to the $3 trillion range as WWDC approaches reflects these expectations. On the last trading day of the New York Stock Exchange before WWDC, the 7th, Apple's market capitalization rose 1.24%, returning to the $3 trillion level. Nvidia closed weaker at the $2 trillion level due to the end of Computex, the effects of its stock split, and antitrust investigations.

Investment media Barron's recently reported that Apple's stock price rose for 11 consecutive days, marking the longest streak since March 29, 2023. Recently, Apple and Nvidia have been competing for the second spot in market capitalization. While Nvidia surged through strong earnings, stock splits, and Computex 2024, now it is Apple's time to counterattack.

Major big tech companies such as OpenAI, Microsoft, Google, and Meta have already introduced new AI-related services one after another. Apple is expected to introduce AI at WWDC and launch a full-scale AI counterattack with the iPhone 16 and iOS 18, which will go on sale in September. If Apple makes announcements beyond expectations at WWDC, the possibility of further gains cannot be ruled out.

A representative change is expected to be Apple's voice assistant Siri. Although Siri was launched in 2011, it has not received favorable reviews as expected. It often gives irrelevant answers to questions. Change is urgently needed in the AI era.

If Siri is combined with ChatGPT, the situation could be completely different. If on-device AI processing within the iPhone can be conducted through Siri via cooperation with OpenAI, there would be no need to worry about security. Through conversations with Siri, it could become possible to give instructions to various apps on the phone or edit photos, among other diverse uses.

Even if Apple collaborates with OpenAI, some analysts believe it is only buying time and will focus on developing its own large language model (LLM). There are also forecasts that the Vision Pro, announced earlier this year, will greatly enhance its usability when combined with advanced AI.

However, while the public focuses on the competition between Apple and Nvidia, this perspective may be meaningless. The directions pursued by Apple and Nvidia are clearly different. Apple focuses on consumer devices, while Nvidia concentrates on solutions for enterprises.

◆ The 'AI Godfather' Praising Apple... What Will Tim Cook Choose?

To resolve curiosity about the AI competition between Apple and Nvidia, the reporter traveled to Taiwan, where Computex 2024 was held. He directly asked Jensen Huang about the AI competition between Nvidia and Apple. Huang responded as follows:

"Apple is doing amazing things. Qualcomm, AMD, and Intel are all competing with Apple, but Nvidia is working on AI factories and AI robots."

Huang did not elaborate further. It was clear that he did not want to emphasize competition with Apple.

Huang's answer seemed to suggest that Apple regards Nvidia more as a collaborator than a rival. His confidence was also evident in his keynote. In his Computex keynote video, scenes of using iPhones, iPads, and Vision Pro appeared frequently.

Especially impressive was the scene at the Foxconn factory implementing new processes using Apple Vision Pro and Nvidia's AI features. Could this signify cooperation between Apple and Nvidia?

It is not hard to imagine cooperation between Apple and Nvidia. Apple's semiconductors and iPhones are manufactured by TSMC and Foxconn. These companies' AI industrial revolution partners are Nvidia. Apple and Nvidia are already connected through the intermediary of Taiwan.

Jensen Huang demonstrating the use of Apple Vision Pro at Computex 2024 keynote.

Jensen Huang using the Apple Vision Pro during his Computex 2024 keynote.

Although Apple was late to enter AI, this could be an opportunity. If Apple preemptively adopts next-generation GPUs with dramatically improved performance, such as Nvidia's 'Blackwell' and 'Rubin,' ahead of competitors, it could significantly shorten its AI entry speed. Considering Apple's financial power and purchasing ability, this is a plausible scenario. Apple currently demonstrates buying power strong enough to monopolize TSMC's cutting-edge 3-nanometer process.

Perhaps Apple and Nvidia are dreaming of the future of the AI era together.

This content was produced with the assistance of AI translation services.