Apple Plans to Spend About $5 Billion to Create a Competitor for ChatGPT

Big phone companies like Google, Samsung, and Apple are making their phones smarter with AI. Google is ahead in this game. Samsung plans to do the same in their new Galaxy S24, and Apple is also working on it.

Reports say that Apple is creating a big update called iOS 18 with built-in smart AI features. Other companies surprised Apple by adding AI features like ChatGPT. Apple had trouble doing the same. To fix this, they’re spending a lot of money on AI servers using Nvidia HGX H100 GPUs.

Ming-Chi Kuo, an analyst, reports that Apple has already used more than $620 million on AI servers and intends to increase this expenditure to as much as $4.75 billion in the coming year. Their goal is to surpass competitors like Microsoft and Google, who are also actively developing advanced AI technology.

Microsoft spent $10 billion on ChatGPT and made Bing Chat, which is popular on iOS and Android.

“Google has incorporated Bard and innovative AI capabilities into Android 14, which are already present in their Pixel 8 phones. Kuo’s projections suggest that Apple could acquire 2,000 to 3,000 AI servers this year, with expectations of scaling up to 20,000 servers in the following 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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