Makes very little sense to me. As much as I want a Xserve, I don't see how Apple has a competitive advantage for the target market.

Nvidia already or will definitely make a product that will compete with Apple, as they are moving towards full integration. They also owns the networking, GPU, CPU, and other parts as well. Apple's only advantage is M8 potentially being slightly faster and macOS. Neither is a moat for the intended market.