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Apple Commits Approximately $5 Billion for the Creation of a ChatGPT Competitor

It’s quite interesting to observe how smartphone manufacturers like Google, Samsung, and Apple are progressively integrating advanced AI capabilities into their mobile devices. Currently, Google is leading the pack by showcasing remarkable AI functionalities in their smartphones.

In contrast, Samsung is preparing to enter the competition. There are speculations that their forthcoming Galaxy S24 will come equipped with innovative AI features. It will be intriguing to witness how they integrate AI into their flagship device.

Simultaneously, Apple, renowned for its dedication to innovation, is also diligently working on enhancing AI functionalities within its product lineup. Consequently, the future holds great promise, with AI expected to play an even more substantial role in our everyday interactions with smartphones.

According to Mark Gurman’s reports on Bloomberg, it appears that Apple is in the process of developing its next major update, aptly named iOS 18. What’s noteworthy about this update is that it’s going to include some really clever AI features right out of the box.

It’s interesting to note that Apple found itself somewhat caught off guard when other tech companies started rolling out AI features in response to the remarkable success of ChatGPT. Apple, in the past, has faced some challenges in effectively launching similar AI capabilities. However, they are determined to rectify this situation.

To make it happen, Apple is making substantial investments in AI servers, and they’re teaming up with Nvidia, a well-known player in the graphics and AI hardware industry. They’ll be utilizing Nvidia HGX H100 GPUs to bolster their AI capabilities, ensuring that they can offer a more competitive and compelling AI experience to their users. It’ll be intriguing to see how all these efforts will shape the future of iOS and Apple’s products.

According to the insights shared by analyst Ming-Chi Kuo, Apple has already made a considerable investment, to the tune of over $620 million, in AI servers. But they’re not stopping there; they have even grander plans, with intentions to invest up to a whopping $4.75 billion next year. Their goal is quite clear: they want to outshine competitors like Microsoft and Google, who’ve been actively working on advancing their smart AI capabilities.

Microsoft, for instance, has poured a substantial $10 billion into ChatGPT and introduced Bing Chat, which has gained popularity among iOS and Android users. On the other hand, Google has rolled out Bard and creative AI features with Android 14, already incorporating them into their Pixel 8 smartphones.

Kuo’s forecast suggests that Apple may acquire somewhere between 2,000 to 3,000 AI servers this year, and that number could surge to a remarkable 20,000 next year. They’re even considering a switch from Nvidia’s H100 GPUs to B100 GPUs and exploring the possibility of developing their own server chips, a move aimed at cost-saving. It’s going to be quite interesting to see how these strategic investments shape Apple’s AI landscape in the coming years.

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