Apple 5$ Billion Investment Aims to Compete with ChatGPT

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In a bid to stay competitive in the rapidly evolving tech, Apple is set up for a significant renovation of its software and hardware, centered around smart AI features.

According to reports from Bloomberg’s Mark Gurman, the tech giant is preparing for its next major software update, iOS 18, which will prominently feature built-in smart AI capabilities.

Apple’s move towards enhancing its AI offerings comes in response to the successes of tech rivals like Google and Samsung, who have been integrating AI features into their devices, prompted in part by the popularity of ChatGPT. Apple, though a pioneer in many areas of technology, has encountered challenges in launching comparable AI features effectively.

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To address this gap, Apple is making substantial investments in AI infrastructure, particularly by deploying Nvidia HGX H100 GPUs for its AI servers. Analyst Ming-Chi Kuo reports that Apple has already spent a significant $620 million on AI servers and plans to escalate this investment, allocating up to $4.75 billion for the next year. The goal is clear: Apple aims to outshine competitors like Microsoft and Google, both of which have been actively developing smart AI capabilities.

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Microsoft, for instance, committed $10 billion to the development of ChatGPT, introducing Bing Chat, which has garnered popularity on iOS and Android platforms. Google, on the other hand, has introduced Bard and creative AI features with Android 14, already integrated into their Pixel 8 smartphones.

Ming-Chi Kuo predicts that Apple might deploy between 2,000 to 3,000 AI servers this year, with plans to scale up to a staggering 20,000 units in the coming year. Additionally, Apple is considering a shift from Nvidia’s H100 GPUs to B100 GPUs and may even explore designing their own server chips to optimize costs and enhance efficiency.

With these significant investments and strategic shifts in AI infrastructure and software, Apple is positioning itself to remain at the forefront of AI innovation and provide its users with a seamless and feature-rich AI experience, in line with the evolving tech landscape.

Ammara Ahmed

Ammara Ahmed

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