It would be preposterous to suggest that Apple will fade into obscurity – at least anytime in the next couple of decades, anyway. Still, with so many of us becoming so used to their tech dominance for large parts of the 2010s – it’s become a distant memory remembering the last time they faced adversity in the wake of new disruptive innovations in the technology industry – and this is what AI has brought to the table.
Few analysts envisaged predicting AI’s short-term, seismic impact. While companies like Nvidia and OpenAI were gathering some pretty serious momentum in the early 2020s, they’ve completely taken over the tech world as we know it, causing all of the Big Tech conglomerates to rethink their approach.
Nvidia – Reshaping The Tech World In Real-Time
All roads lead to Nvidia if we want a real, live use case of a company that has spearheaded AI developments and broken new ground consistently over the last two to three years. Nvidia’s monumental success, which has seen its share price rise 2,760% in the last five years, has made many traditional tech companies quickly pivot toward AI. Microsoft’s renaissance has been largely due to its AI investments. They wasted no time in merging or buying out some of the sector’s most prominent names, which has led them to become the biggest tech company in the world, a title they first held in 2003.
Nvidia has been a market leader and pioneer in GPU technology and now has a monopoly on the top GPU processors, used for a wide range of laptop, PC, and gaming devices—alongside a huge range of corporate, finance, and healthcare uses.
The rush for Nvidia chips led to a bottleneck in supply, given that Sony needed it for their PlayStation 5, and there was a colossal rush from Bitcoin miners looking to mine cryptocurrency but requiring extensive computing power to do so. Gaming has been the unlikely driving force that led to the mass production and demand for Nvidia GPU processing power – you don’t have to be the richest gamer in the world to spend big on a powerful gaming setup.
Still, if you’re a stream with millions of subscribers and you need the best software to avoid latency issues, you will want the best. As this industry grows, demand is skyrocketing in conjunction with Bitcoin mining and broader AI investment.
The Fightback From Apple
While some in the tech sector have accused Apple of resting on its laurels and relying too much on overproduced, widely similar iPhone designs, which has let Microsoft beat them to the punch with AI and made the battle an enthralling one once more, Apple has been making a lot of progress and driving a lot of its capital into AI research.
Apple has also kept much of its AI research in-house and relatively secretive. While they might have missed the starting pistol, so to speak, recent reports have stated that their focus on AI technology in data centers appears to be an inventive and well-structured plan from the Californian tech juggernaut.
Crucially, they still have a strong, multifaceted approach to digital hardware and software. iPads, AirPods, and their latest VR headsets are all expected to continue driving revenue. Some of these profits will have already been identified as capital for their AI pivot.
As Microsoft continues to acquire innovative start-ups, one area where they might feel a pinch is when regulation comes into focus. AI is currently flying through a golden phase moment, which is unregulated. Still, once it is, this could render some of Microsoft’s investments within certain areas less prosperous than initially thought. This is speculative, though—and it could also work the other way.
However, Apple definitely isn’t in the business of rolling over for the competition, and their focus on data center AI tech could prove to be fruitful over the next few years.
Summary
Apple has already lost some ground to AI, but it’s also seen a decline in iPhone sales and has faced criticism for the design of some of its latest hardware. Combine this with Microsoft really getting into gear and making some excellent investments in AI—including nearly $3 billion in furthering the development of AI infrastructure in Japan.
Tim Cook will be the first to admit that Apple might have been slow off the draw regarding AI, but it’s probably safe to say that the resurgence and comeback are well underway. It’s difficult to see Apple, with its resources and industry position, losing any further ground to Microsoft. However, don’t be surprised to see Nvidia leapfrog them in the short term.
Again, Nvidia may see a retraction in light of AI regulation, which could cause the wider sector to plateau or level out at a more natural share price. The most likely outcome seems to be that Microsoft, Nvidia, Apple, and Google will cement themselves as the four standalone tech operators. So, while it will not be the end of Apple, their tech dominance, which they enjoyed for most of the 2010s, appears to be over.
