Friday, October 11, 2024

Apple to Invest Around $5 Billion to Develop ChatGPT Rival

Phone makers like Google, Samsung, and Apple are adding smart AI features to their devices. Google is leading in this area. Samsung is planning to do the same in their Galaxy S24, and Apple is also working on it.

Reports by Bloomberg’s Mark Gurman say that Apple is creating its next big update called iOS 18, which will have smart AI features built-in. Apple was caught off guard when other companies introduced AI features in response to the success of ChatGPT. Apple has struggled to launch similar features successfully. To fix this, Apple is investing heavily in AI servers using Nvidia HGX H100 GPUs.

Analyst Ming-Chi Kuo says that Apple has already spent over $620 million on AI servers and plans to invest even more, up to $4.75 billion next year. They want to be better than rivals like Microsoft and Google, who have also been working on smart AI.

Microsoft spent $10 billion on ChatGPT and made Bing Chat, which has become popular on iOS and Android. Google introduced Bard and creative AI features with Android 14, and their Pixel 8 phones already have these features.

Kuo predicts that Apple might get 2,000 to 3,000 AI servers this year and up to 20,000 next year. They might also switch from Nvidia’s H100 GPUs to B100 GPUs and even make their own server chips to save money.

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