With new Macs, Apple aims to take on Microsoft, Nvidia in a rush to lower AI costs

When Apple's new desktop computers hit the market on Tuesday, executives will be making an unusual pitch to corporate buyers: their machines are cheaper than renting data centers. Apple's upgraded Mac Minis and Mac Studios, priced nearly $20,000 each, will compete directly with the new desktop machines set to be released by Nvidia and other PC makers, expected to be a key focus at Microsoft's upcoming Windows event in San Francisco.

The new Macs target intense AI tasks like coding and complex business operations, avoiding the need to pay for "tokens" - the basic unit of AI computing - from cloud leaders like OpenAI or Anthropic. Apple believes its expertise in optimizing battery life for portable devices like iPhones will help it gain ground against Microsoft's home turf. However, this is no easy task; Apple holds only about 4.6% of the enterprise desktop market, compared to Microsoft's 91.3%, according to IDC's Linn Huang.

Apple co-founder Steve Jobs was known for his ambivalence towards enterprise computing, citing user's lack of choice in products. Yet, Apple finds itself in a strong position for AI desktops, thanks in part to its constant focus on energy efficiency. When Apple introduced its first Apple Silicon chips in 2020, it combined computing and memory into a unified architecture, boosting battery life. This design, which Nvidia and others have only recently adopted, makes Macs well-suited for AI tasks.

Apple started selling out of Mac Minis as an open-source agentic AI tool called OpenClaw gained popularity in markets like China. Mac Studios, initially aimed at content creators, have gradually incorporated more AI features, including a specialized chip-to-chip networking protocol called RDMA over Thunderbolt, over the past two years.

At their recent launch event, Apple demonstrated four Mac Studios linked together to run an AI model with a trillion parameters, designed to locate and fix a graphics coding bug - a task typically requiring a data center, but running off a single wall outlet.

Once you have the machine in your office, you've paid for it and there are no additional costs per token. You're simply reusing the device. According to Apple's chief hardware officer, Johny Srouji, the Macs offer exceptional value in terms of performance and cost.

Microsoft is also targeting the same market for "unmetered intelligence" of on-device AI. CEO Satya Nadella has hinted at integrating many of Microsoft's AI features into a "super app" for Windows. Microsoft has been working with chip partners to optimize AI work with its Windows ML tools. However, Microsoft declined to comment on any direct competition with Apple.

Nvidia, for its part, declined to comment but at the launch of its latest PC chip this summer, CEO Jensen Huang downplayed any intention to compete directly with Apple, focusing on expanding what Windows PCs can accomplish. Nvidia's stronghold remains in the data center. Srouji believes Apple is pitching corporate buyers on the idea that AI models developed on its devices can scale up from its priciest Mac Studios down to its cheaper iPhones and iPads, thanks to their shared design principles and capabilities.