Nvidia (NASDAQ: NVDA) has been a scorching-hot buy over the past couple of years, largely due to the key role it plays in artificial intelligence (AI). The company's AI chips are crucial for companies that are developing AI models. And Nvidia has a commanding 80% market share when it comes to AI chips. That's part of the reason why investors have remained bullish on the stock -- it's arguably the best-positioned stock to benefit from growing demand for AI.

But given how lucrative the opportunities are in AI, it's only a matter of time before more competitors emerge and fight for market share. Apple (NASDAQ: AAPL) has recently turned to one of those unexpected competitors to source chips for its new AI-powered iPhones.

One of the companies that has been developing its own chips is Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL). And Apple has been training its new AI system, called "Apple Intelligence," using Alphabet's custom chips, according to a research paper. The company used two versions of Google's tensor processing unit to develop its AI models, which gives iPhone users access to generative AI features, including advanced writing tools, the ability to generate images, and a Siri assistant with "all-new superpowers."

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Source Fool.com