Tuesday, April 23, 2024

Does Apple Really Have Plans to Invest $5 Billion to Bring the Rival of ChatGPT?

In the ever-evolving landscape of smartphone technology, the integration of smart AI features has become a pivotal battleground for major players like Google, Samsung, and Apple. As of now, Google appears to be leading the pack in this arena, but both Samsung and Apple are gearing up to make their mark.

According to reports from Bloomberg’s Mark Gurman, Apple is in the process of developing a major update known as iOS 18, which will come packed with integrated generative AI features. This move signals Apple’s determination to catch up in the AI game after being somewhat caught off guard by the rapid success of ChatGPT and the subsequent AI feature race among competitors.

One of the key steps Apple is taking to establish its AI dominance is significant investment in AI servers, specifically utilizing Nvidia HGX H100 GPUs. Analyst Ming-Chi Kuo estimates that Apple has already spent over $620 million on these AI servers and is committed to investing an impressive $4.75 billion in the coming year. This substantial financial commitment is aimed at ensuring Apple remains competitive with tech giants like Microsoft and Google, who have made substantial strides in the realm of generative AI.

For context, Microsoft made a staggering $10 billion investment in ChatGPT and incorporated its capabilities into its search engine, resulting in the creation of Bing Chat. The company further expanded its presence in the mobile market by releasing an iOS and Android app for Bing Chat, which experienced significant success. Google, on the other hand, introduced Bard and ushered in a range of creative AI features with the release of Android 14 and the Pixel 8 phones.

The scale of Apple’s AI ambition is substantial, with predictions from Kuo suggesting that the company might acquire as many as 20,000 AI servers next year, a significant leap from the expected 2,000 to 3,000 servers for the current year. Additionally, Apple may explore alternatives such as transitioning from Nvidia’s H100 GPUs to B100 GPUs and even developing its own server chips to optimize costs.

In summary, the race for dominance in the AI arena continues to intensify among smartphone manufacturers. Apple, spurred by competition and the need to keep pace with technological advancements, is making significant investments to solidify its presence in the generative AI landscape. As iOS 18 looms on the horizon, it’s clear that Apple is determined to become a force to be reckoned with in the world of AI-driven features, and the industry will be watching closely to see how their endeavors unfold.

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