Apple isn't playing the same AI capex game as the rest of the megacaps

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While many of the largest tech companies race to build massive data centers for their artificial intelligence ambitions, Apple

is taking a more modest approach.

Instead of simply buying as many AI chips as possible, Apple buys computing capacity from outside partners, finance chief Kevan Parekh explained Thursday on the company’s fourth quarter earnings call.

When Apple does build servers for its AI software, the company is using its own chips — not those from Nvidia or AMD — to power a service it calls Private Cloud Compute.